Google in mobile carrier talks

2 Nov, 2007 -by CommsDay

Google is in talks with Sprint Nextel and Verizon Wireless to integrate its mobile applications into handsets sold by the two operators, according to insiders cited by Reuters.

The proposed deals would give Google a leg up in the wireless market by ensuring millions of subscribers use its software - and are exposed to the ads appearing alongside them. The tie ups could find all three players splitting ad revenue for free sponsored services designed to entice consumers to sign up with the operators, although everyone is remaining mum for now. “There are good useful talks going on and they could result in a deal,” a source told the agency.

Sprint Nextel previously announced a Google search alliance for its forthcoming WiMAX network back in August. Earlier this week, Verizon Communications COO Denny Strigl told analysts the operator was in talks with several firms including Google. At the same time, the Wall Street Journal reported Google was nearing a phones-and-software announcement that would integrate its various mobile applications for use on handsets by next summer. Google is expected to make its mobile platform open to inspire independent applications development - a strategy also in the works for its traditional Web services under a project code-named Maka-Maka.

Analysts are skeptical that notoriously tightfisted US operators will be willing to work with a company demanding open platforms - especially following a promise earlier this year to invest at least $4.5 billion in a forthcoming spectrum auction that has already riled carriers due to an open access requirement. “Google is developing a device that allows them to go directly to consumers. That works much better in Europe than here,” warned IAG Research analyst Roger Entner. Google has remained mum on the subject but is also believed to be developing its own branded handset with Taiwan vendor HTC.

Whether this phone would be sold through its tentative operator partners remains unclear. Meanwhile, France Telecom dismissed reports it too is negotiating with the search giant to package its mobile software on handsets. "We formally deny being in talks with Google about a handset,” a spokesperson told reporters.

AOL will allow surfers to opt out of its targeted ad operations. The portal plans to release a downloadable cookie designed to block other cookie-based ads and will publicize the program with “millions” of banner ad impressions on both the main AOL site and those operated by ad peers. The solution was developed by online behavior tracking firm Tacoda, acquired by the Time Warner unit earlier this year. “Our goal with this program is to engender greater trust for targeted advertising by communication with consumers in a more visible, and by providing them more information about their choices,” said AOL executive vice president Curt Viebranz. The announcement comes one day before the US Federal Trade Commission kicks off an inquiry over the controversial tracking of online behavior by site operators, who often rely on cookies to determine the nature of consumers' online activities and deliver associated ads.

OVERSEAS EXPANSION: AOL unveiled Hindi and Tamil versions of its portal for the Indian market this week and added eight international markets to its video search operations. The moves are the latest effort in a renewed global push that has seen the portal ditch its foreign ISP operations and expand its free portal business, including recent launches in Italy, Spain and Sweden.

Google nears mobile phone deal with Verizon, Sprint: WSJ

31 Oct 2007
Google is close to a deal with Verizon Wireless and Sprint Nextel over its new mobile phone, according to the online Wall Street Journal.

An agreement is likely to reached within two weeks for launch of a Google phone in the middle of 2008. The central feature of the Google handset will be an open operating system that will encourage developers to create apps.

But the phone will include Google’s own applications – Google Maps, Gmail and a social networking feature combining YouTube and Facebook-style offering called Makamaka.

An agreement with major US operators would be a breakthrough for the search firm in its dealings with wary telecom operators.

As the ATT-Apple iPhone deal demonstrated, the carriers are still the critical elements in handset marketing channel, especially in the US.