Google Morphs to Wireless Direct Seller, PwC Cloud Consultant, Reseller Financer
It’s no surprise that ambitious Google (GOOG) isn’t satisfied with delivering a string of in-demand services to its customers. The search giant clearly wants more influence in the market–after all, why sells cars when you can sell highway access?
Along those lines, Google reportedly has signed reseller deals with telecoms Sprint (S) and T-Mobile (TMUS), the third- and fourth largest wireless carriers, to sell wireless service directly to end customers, The Information reported. The deals, which some observers say will spur heightened price competition and improve performance, effectively make Google a mobile virtual network operator, or MVNO.
In the larger sense, the deals are a potential coup for Google. With MVNO status in tow and the means to sign on millions more customers, Google stands to benefit from users turning to its products and services, not only its search engine but also YouTube, Gmail, its app store, productivity suite and other options. And, that’s not including how many more Internet-enabled customers might seek out Android-based smartphones.
Google’s wireless resale project, codenamed Nova, is headed by Nick Fox, a company veteran, who previously mulled over launching the service late in 2014 following some internal testing, The Information reported.
The search giant, which maintains an ongoing program to build out fiber networks for broadband service in select areas in the U.S., hasn’t said how and where it will offer its new wireless service nor has it set prices.
Google, which reportedly first approached Sprint a year and a half ago, will operate as a reseller of Sprint’s and T-Mobile’s network service, in a rebranding, wholesale agreement. While there’s some concern that the deals are tantamount to inviting the fox into the hen house, Sprint’s and T-Mobile’s top brass are said to be banking on a barrage of new, Google-driven customers to allay the ravages of price competition and rising costs for wireless spectrum. We’ll just have to see on that one.
Separately, IT consultant PricewaterhouseCoopers said Google is one of its partners on a bid for the Department of Defense (D0D) Healthcare Management Systems Modernization (DHMSM) Electronic Health Record (EHR) contract valued at some $2 billion. The winner bidder is expected to be selected by June.
The two companies already maintain a working agreement involving Google for Work productivity software and cloud services.
And, late last week, Google said it is collaborating with online lender the Lending Club (LC) to offer low-interest loans to channel partners reselling it Google Apps for Work products, including Gmail and Google Docs. Under terms of the deal, the Lending Club will administer the two-year loans and Google will provide the money. Partners will pay 5 percent interest in the first year with the rate subject to change in year two based on the partner’s record.