WSJ.com reports on Google bidding to offer a free and open Wi Fi service to the City of San Francisco and looks at what it means for more traditional telecoms companies.
Ironically, most of the newer, bigger Internet entrants see telecom services almost as an afterthought, not a key product. Companies like Google, Yahoo Inc., Microsoft and eBay consider free voice just an add-on service they can provide consumers to win their business loyalty and make their main businesses more attractive. For example, eBay customers could buy and sell more if they can talk to each other. EBay and Google have even said explicitly they are not seeking to compete with telecoms. But whether it’s deliberate or not, some industry executives and analysts think their plans potentially could steamroll the telecom model.
“I believe that free voice is going to be ubiquitous not in 10 years; within two or three years,” News Corp.’s Rupert Murdoch told a Goldman Sachs investor conference last month.
WSJ.com points out that – despite widespread speculation – Google have stated they have no plans to extend the service nationally if it is successful.