Thursday, August 9, 2007

The Ad-supported Cellphone

Now that everyone has had a chance to play with Apple's take of cellphones, who wants to see what Google can do? I believe Google is on that path.

Recently Google has acquired a variety of interesting cell and VoIP companies including GrandCentral.com, a start-up I mentioned in a previous post. Most importantly, they are taking part in the auction for the analog spectrum now open from television's switch to digital. They, or a major cell company most likely, will be purchasing the spectrum for over ten billion dollars. The winner would be in position to offer cell coverage cheaper than ever... or as expensive as ever while taking a much bigger profit.

If Google wins this I believe they will enter the cellular arena with an ad-supported phone. A phone that would involve either a free or cheap monthly plan as a trade off for ad placement. I could see ad placement taking advantage of the phone's built in GPS so the advertisments would be localized. Google knows a device you carry with you and listen to constantly is very valuable of real estate.

Even if Google is trying to take over the world, I hope this victory will be theirs. Cell companies as they are now take advantage of their customers to no end. They either need to be put out of business or change their business model.

1 comment:

Unknown said...

I saw google buying grandcentral as an indicator that they might one day enter the mobile market. I could see google doing it too, I could see google buying say, the t-mobile or sprint network and a service like youmail to cover voicemail and calllog features and offering it at a super low rate. ads included of course.