Bear in mind that Google Fiber offers facilities-based broadband competition.  At least initially Google will package and resale bulk wireless bandwidth from TMobile and Sprint.  Additionally most consumers will have to acquire one of the few handset types compatible with the service.

            On the other hand, Google has the patience and deep pockets needed to see this project through.  Google is not the first venture to resale wireless, or to combine cellular and Wi-Fi access to the Internet.  However it has the buying power and tolerance for financial losses sufficient to allow the venture to acquire market share slowly.

            Should Google Wireless reach a critical mass, the impact will be huge.  Consumers’ expectations could change in terms of what a wireless service should offer and what it will cost.  Currently consumers have to commit to data plans that add significant blocks of capacity, but at rates considered quite expensive relative to global averages. U.S. carriers can tout low data rates only by spreading high monthly costs over similarly high data monthly allowances.  Had AT&T gotten government authorization to acquire TMobile, no carrier or reseller would have offered subscribers the opportunity to carry forward unused capacity into the next month. 

 

            Google Wireless will offer a metered, pay as you go a la carte opinion that appeals to cost-conscious consumers.  If Google gets traction, expect more sponsored data plans to become available, provided the FCC does not consider them a violation of network neutrality policies.