Tom Mamela - Google Our new mobile phone provider?

Google: Your new phone carrier?

NEW YORK (CNNMoney.com) -- From robot autos to wind farms, Google's expansive ambitions have taken it into some astonishing corners of the tech area. Here's yet another it could tackle: Growing to be your telephone firm.

Google has assembled all the pieces it requirements to be a cellular provider like Verizon, AT&T (T, Fortune 500) or Sprint (S, Fortune 500).

The search company dabbles in offering phones, it licenses the ultra-well-liked Android smartphone operating program, and it is attempting its hand at turning into an World wide web service supplier.

But its largest weapon is Google Voice, the hit reduced-cost calling service that launched in May possibly 2009. Just 5 months later, the service had one.4 million people -- practically 50 percent of whom had been making use of it just about every single day.

Google currently relies on the established carriers to market and assistance its devices. But if Google has the capability to deal right with its clients, why not cut out the middleman?

"Google's numerous efforts are clearly centered on becoming capable to attain as numerous folks on the planet as feasible, but that is not one thing they can totally complete just by licensing out Android," says Ari Zoldan, CEO of Quantum Networks, which supplies devices for Sprint's WiMax network. "If Google could locate an simple way to transition into the cell room and supply mobile protection, there would be some quite significant positive aspects to that."

By no means afraid to push the envelope, Google (GOOG, Lot of money 500) been shifting in that route for years.

Purchasing the infrastructure: In 2008, Google put in a bid to purchase wireless spectrum to provide mobile Net entry -- spectrum that in the end went to Verizon (VZ, Fortune 500) for its new 4G network. Rumors that Google is acquiring up "dark fiber," broadband cables that have been laid but are not in use, have been broadly circulated, even though in no way confirmed.

Connecting shoppers: In February, the company announced that it will develop into an Web provider of "ultra higher-velocity broadband" for up to 500,000 shoppers for a U.S. city. That undertaking is nonetheless below development, but Google is about to commence testing its service out at Stanford College.

Google currently allows people today to bypass their mobile carrier's service. Google Voice lets buyers deliver no cost text messages, and the new model of Android ("Gingerbread") supports VoIP World wide web calling, permitting customers to make calls over more than Wi-Fi networks.
:00 /2:19Google Voice anyplace

Operating technique: Google styles and licenses the quickest-selling smartphone operating program on the planet: Each and every day, about 300,000 new Android gadgets are activated. Android is free of charge for gadget companies to license, so it has caught on like wildfire. Google helps make funds by driving search targeted traffic on Android phones.

Selling phones: Previously this yr, the search giant made the decision to experiment with marketing the Nexus 1 Android telephone immediately to customers on the internet. Although it was hardly profitable, Google laid the basis for a long term in retail.

"Google manufactured some noise about attempting to open up the carrier area, but it realized the tough way with Nexus A single that this is a lot easier explained than carried out," says Al Hilwa, analyst at IDC. "Although I have no doubt its ambition stays intact."

The subsequent techniques: So what does it all add up to? Would Google truly be inclined to give up its robust relationships with the carriers, most notably Verizon -- the largest network -- to go head-to-head with them in the wireless space?

We asked. Google declined to comment.

It's not possible in the instant long term. Google's Android is the hottest item in the mobile industry, and the corporation relies on carriers to adopt its software package and drive shoppers to its search site.

But it's a genuine likelihood down the street. The Federal Communications Commission lately failed to enact robust Net neutrality guidelines for the wireless group. That leaves open the solution for carriers to restrict their subscribers' access to some of Google's offerings.

Google warned of that chance in a current SEC submitting: "Some of these companies have stated that they may well get measures that could degrade, disrupt, or improve the expense of person access to certain of our merchandise by restricting or prohibiting the use of their infrastructure."

There have already been a handful of skirmishes. Verizon has created Microsoft's Bing the default search engine in some of its Android phones, depriving Google of that coveted spot, and it took more than a year of fighting to make Google Voice obtainable for iPhone users.

Some professionals believe that that just obtaining the pieces to the puzzle assists Google in its negotiations with the carriers.

"It's all aspect of their mentality to push the envelope and keep service suppliers on their toes," says Michael Grossi, director of consultancy Altman Vilandrie. "It's a way of keeping checks and balances."

As very long as Google can get 300,000 new phones a day into customers' hands via the current carriers, and as lengthy as these gadgets let customers to download something they want, there's no purpose for them to compete, says Forrester Exploration analyst Jeffrey Hammond.

But as Hank Paulson famously explained, if you have a bazooka in your pocket and folks know it, you possibly won't have to use it.

"While I believe Google could grow to be a cellular supplier, I'd view it as a nuclear option," Hammond says.

Certainly, there would be some hurdles for Google to clear. Google would likely deal with in depth regulatory scrutiny if it were to grow to be a wireless supplier. It has incredibly small customer service or retail experience. And getting to be a information supplier is an pricey new enterprise that could weigh on its margins.

Still, Google has the money and the sources to get it carried out. All that's left is the will to do it.

"It's a traditional Google experiment," Grossi says. "Google loves to push the boundaries to see what's feasible."