KEY POINTS:
If there was any doubt that internet search giant Google has its heart set on dominating the mobile phone industry the way it has the internet, it was well and truly snuffed out last week.
Not only was Google instrumental in winning concessions in the rules of an upcoming auction in the US of radio spectrum that will guarantee that any device or service can be used on that spectrum, but Google has poured hundreds of millions of dollars into developing mobile phone designs.
Whether Google will, in the next few years, go head to head with AT&T, Sprint, Verizon and T-Mobile to construct a mobile network in the US is far from clear. To do so would be horrendously expensive, even for a cash-rich behemoth like Google. It would need to be successful in grabbing a slice of the airwaves in the upcoming auction, and it hasn't indicated yet whether it will participate.
Last week I reviewed Apple's iPhone which, with its touch screen and intuitive user interface, is a game-changing device. By as early as next year, if rumours of Google's tie-ups with Taiwanese hardware makers are correct, the gPhone could be on the market, offering even more compelling functionality.
After all, applications like Google Search, Maps, Talk, Gmail and Documents have been adopted by millions of web users around the world. While many of those people are using Google on their mobile phones, a handset designed to deliver the best Google experience would be very powerful.
If the risk of over-extending itself in the mobile space is a real one for Google, the rewards for going mobile are also very real. The US mobile phone advertising market was worth US$1.5 billion last year and is expected to reach US$14 billion by 2011, says research company eMarketer.
I very rarely click on adverts displayed on the Google search engine or to the right of my messages in Gmail, Google's free email service. But I'd be much more likely to click on an advertising link on my mobile phone that throws up results based not only on what I punch into Google's search engine, but also on my physical location. Maybe I could type in "movie sessions" and a group of links to movies showing in the next few hours at inner-city Auckland theatres would appear, because I am standing on Queen St. That would be very useful.
I use Gmail on my Harrier smartphone, but if I could use a phone to have Google Talk chat sessions and to access Google Documents in a nice way, I'd consider switching.
While Google has prototypes of its own phones in the works, it also appears that it is developing software and hardware standards that it will encourage mobile handset makers to adopt. If early reports are accurate, the standards have a heavy weighting towards mobile internet access, with recommendations that handset makers build Wi-fi and 3G high-speed data access into their phones. Google is also said to be working on an internet browser for mobile phones.
Google's business model has always rested on free services, but supporting them with advertising is a highly lucrative strategy. Would a "gPhone" allow free calling and internet access but require you to listen to or watch adverts? It's not out of the question and would turn the existing mobile billing model on its ear. Will Google and Apple steamroller the traditional mobile heavyweights Nokia, Motorola, Samsung and Sony Ericsson? Unlikely, but they'll certainly get a run for their money in the next couple of years if the gPhone comes to life.
