Rumors swirling about Google attempting to buy T-Mobile are doubtfulRumor
Posted by Seth PlanckDecember 13th, 2011 at 10:40 AM Filed Under Latest News, Rumor
Rumors swirling about Google attempting to buy T-Mobile are doubtful but interesting
The industry is a flutter with the prospect of the AT&T / T-Mobile acquisition failing. Many industry pundits are speculating about who might buy T-Mobile if AT&T is prevented from doing so. Dish Network’s name has been thrown in the hat and we have heard from a few of our sources that Google has also been in talks. Let us note that even our sources are doubting the validity of the Google rumor, but there is usually no smoke without fire. So, at some point Google may have played with the idea of taking T-Mo for itself. Whereas Google may have no current plans to purchase T-Mobile, it would have still made sense for the firm to do so considering their reliance on mobile and the weakened Google Wallet position with three main MNOs in the United States.
Google has a few irons in the fire at the moment, as its Motorola Mobility merger has temporarily been halted by EU Regulators until unnamed documents are produced that hold vital information the panel requires. Industry experts have said that the Google -Motorola Mobility acquisition is a mistake, but Google has rebutted this stating that the patents make the deal make sense. The Motorola Mobility deal is likely to close in 2012, reports Bloomberg, and it is going to be interesting to see what Google does with its new capabilities.
Google grabbing T-Mobile would allow for NFC services including NFC payments
A couple of months ago there were rumors swirling about Google becoming an MVNO over in Spain that turned out to be unsubstantiated . That rumor took hold in part because of some well done graphics and the natural logical fit that business model would make for Google. Now we are hearing the same type of rumors from industry insiders about T-Mobile. This rumor doesn’t pass our litmus test for a couple of reasons.
Those reasons include the fact that Google doesn’t normally purchase firms that are location based. T-Mobile USA is naturally locked in the States and isn’t a web based service. Google’s biggest successes come from offering free services with a monetization strategy attached that usually revolves around marketing and ads. T-Mobile under Google’s command would still have to charge monthly service fees, and this again doesn’t fit with a normal Google model. But there again, the Motorola Mobility doesn’t pass that test either.
What we want to know is how you would feel about Google purchasing T-Mobile USA. Would you use Google as your carrier if they upgraded the network to LTE and offered their value added services? Do you think it would represent too much power to one company? Do you think that Google will attempt to get into the MNO game at any point? Please let us know in the comments too, so we can see whether this ground swell of excitement over what is probably a false rumor represents a true consumer demand or is simply a media frenzy.
Whether this rumor is true or not, it brings up some interesting questions in regards to who Google is as a company and what its future looks like. Google may have failed to acquire T-Mobile USA, or may have not even been interested in gaining that asset and service, but the media sure does get excited at the thought of such a merger.