Google Will Not Crack The Wireless Market By Following Others Into The MVNO Arena

Dan Bieler

Source: DroidLife

Much has been written about Google’s foray into the wireless service provider arena. Now Google has announced its push into this market with its Project Fi offering, which is based on the mobile virtual network operator (MVNO) business model.

There is nothing revolutionary about Google’s wireless offering. Rather than acting as a market disruptor, Google has opted to enter the wireless market by launching a package similar to the one that Republic Wireless has provided in the US since 2011. So why should anyone pay attention to Google Fi? Because Google is a very large and powerful player in the mobile market. My main observations are that Fi is:

  • Unlikely to disrupt pricing in the US wireless market significantly. Google Fi's pricing is a fixed $20 unlimited talk/text plan plus $10 per GB of data, plus tax; a 3GB data package will cost users about $55 per month. Interestingly, users don't pay for data that they don't use, and many Fi users will not use their full data packages: For instance, the average Republic Wireless user pays only $7.50 to $8 per month for data. Still, for penny pinchers, pure Wi-Fi plans are much cheaper. The most attractive part of the deal is the roaming aspect – but only for overseas travelers.
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