Google is currently in talks with Hutchison Whampoa, the owner of Three mobile operator regarding a deal. This deal will let Americans to use their smartphones abroad without bearing any additional cost, reveal industry sources.
The two firms are in talks about a wholesale access agreement that will be a vital part of Google. It is planned to create an attempt that will have an impact on the US mobile market with its network.
It is known that Google is aiming to form a global network that will charge the same for calls, texts and data irrespective of where a customer is currently located. By partnering with Hutchison, it can get the complete access to the mobile service in regions such as UK, Italy, Ireland and several other countries where the firm provides its services.
According to the sources, Hutchison was a normal partner for Google in this plan as it has decided to eradicate roaming charges for the customers of Three. Moreover, Google announced in the last month that it will launch a mobile network. Though it will not involve in creating mobile masts, it will rely on the wholesale deals that will be used in the existing infrastructure at its homeland as well as abroad.
Industry analysts believe that Google will be using the network to create a stress on the pricing of the major mobile operators in America such as Verizon and AT&T who are enjoying high profit margins in comparison to their European equivalents. The project is used to cheer the operators prompting them to invest in latest technology to enhance the mobile coverage through Wi-Fi networks.
Google adopted a similar plan in the fixed line telecom market in US with the Google Fiber. This project is aimed to build fiber optic networks in those cities where there has been an absence in the investment for internet infrastructure. Same way, the Nexus lineup of devices from Google is influencing the device makers.
The sources have made it clear that there is no plan for Google to enter the mobile network market in the UK for the foreseeable future. The telecom market in Europe is competitive and the roaming charges are almost getting eliminated by the service providers.
However, there is no comment from both Google and Three regarding this plan. Anyways, the telecom industry will fear the entry of Google into the mobile market.