Elizabeth Judge, Telecoms Correspondent
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Some of Europe’s main mobile operators yesterday dismissed Google’s plans for transforming internet access on wireless devices, insisting that they are better off going it alone.
The head of one leading mobile network, which is not participating in the project, said: “Clearly Google has an interest in positioning itself to be able to take advantage of the advertising revenue streams in mobile land, but we believe we are in a good position to develop those streams as well.”
Google this week revealed plans to expand into the mobile phone market by developing a new operating system for mobiles. It claims that the system, called Android, will make accessing the internet on a mobile much more like doing so on a computer.
Android will be open source, so that any developer can add innovative new applications for customers. As it is backed by so many big players, Google hopes that it will provide an industry-wide standard to replace the rival, inflexible, systems used by different mobile operators.
Google claims that it has no plans to make money from Android, but merely wants to get more people on to the mobile web.
However, analysts said that the group’s aims are twofold: to make the mobile a more credible advertising platform – Google’s core business is advertising; and to increase its take from advertisers by providing them with much more detailed information on its users.
Ben Wood of CCS Insight, the telecoms research group, said: “By getting into mobile, Google can refine the information it has on you – find out who you are calling on the move and what you want to know on the move. This means it can then target ads evermore efficiently, which means it can charge advertisers more for the adverts they are placing.”
The mobile operators are divided. Although some big players such as China Mobile, Telecom Italia and Motorola have signed up to the Google project, others including Vodafone, Orange, the French-owned mobile operator, and Nokia have so far declined to join.
The problem, say analysts, is that while a more user-friendly mobile web is an obvious benefit, mobile operators also risk giving much away. “Giving Google access to their customer base is essentially like giving away the crown jewels,” Mr Wood said.
On the upside, Google is expected to adopt the model of paying operators that will run the system over their networks – money that would be welcomed by mobile companies, which are struggling in mature, saturated markets.
Players beyond Google stand to benefit from a better mobile internet, Julien Theys, a telecoms research analyst at Screen Digest, said. “For anyone to make money, mobile has to become credible as an advertising platform – and Google is a powerful brand and a company with momentum,” he said.
One key factor holding back the advertising market so far has been the poor mobile internet experience.
But in addition, Mr Theys said, some are likely to fear losing the tight grip they have over their revenue streams: “In part it is probably a question of control – that if they lose their grip on some parts of the mobile advertising chain then they might never get it back.”
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