As Google approaches $700 a share, they are reported by the Wall Street Journal to be in "advanced talks" with the #2 and #3 wireless carriers in the U.S. As discussed here before, Google expects to create a new ecosystem around the Google phone - software development kits, handset OEM deals and multi-carrier availability. While Apple's iPhone initially did not come with an open API for third party development, the Google phone is expected to allow operating system access - thereby allowing developers to build additional phone features. Apple recently announced their iPhone SDK amid much enthusiasm from the developer community.
It remains to be seen how much Google will compromise to get
handsets launched with the carriers. With this recent news the blogging community is taking the opportunity to throw Verizon under the bus - seeing them as
crippling the Google phone. Originally, it was thought Google would release an
open handset GSM device allowing customers to select the carrier of choice. Get
your Google phone, insert your SIM and go - of course that is too simple! Most industry
observers view an open handset as a long shot due to long standing stranglehold
carriers have on devices. Apple moved the user experience in a new direction,
but the carrier business model essentially stayed the same. Advertising revenue from mobile phones is
still small but the expectation is the market is growing and with the decline
of voice revenue, carriers see it to build their top line revenue.For Google - the carriers want you, need you, just don't let
them bleed you.