Google Phone, Free Cellular and VoIP Calling?
Source: smithonvoip.com
The Realization of Free Calling
On the heels of Isabel Aguilera, the head of Google in Spain and Portugal, hinting at the full blown development of Google Phone, I believe what Google is working on will be the realization of the cellular phone revolution that the Apple iPhone fell sort of. Based on the volume of user search data compiled over the past few years, I believe Google has been able to estimate (to the user) the average monthly income that could be generated through mobile advertising.
Ad Revenue to Replace Monthly Subscriber Revenues
Using these revenue projections Google will approach cellular providers about offering free calling, via cellular and or mobile VoIP, for those who purchase the Google Phone. The carriers lost subscriber revenues will be replaced by an ad revenue profit share between Google and the carrier. Facing the looming prospects of minute stealers, and the gravitional pull of pricing towards zero, cellular provider(s) will more than happy to partner with Google. Now that is how you sell a $500 phone!
Given the increasing use of data, SMS, and MMS, in addition to multimedia sales, for cellular providers it means an increase in customers (because calling with the Google Phone is now FREE), and an increase in it’s ability to sell through those add-on service mentioned above in order to drive ARPU substantially beyond current trends.
Far Fetched?
Many will probably say yes, but I do not think so. In the past, the ad supported free calling model has failed, but none of the employing this business model were Google, and if any company can make ad supported free calling a viable business model it is Google - just look at what they have done with search. As mobility increases in importance, as consumers look to break the chain of the desktop, so to will use of their mobile phones for search and all other facets of personal communications.
This further increases the need, marketplace, and viability of mobile ads and the ability to offer free cellular calling through replacement of cellular subscription revenues with mobile ad revenues. So go ahead and tell everyone that Smith is crazy - just don’t get mad when your cellular calling is free via your Google Phone and I say, “I tol you so!”
