Sunday, December 20, 2009

Nexus One, savior of the cell phone industry?

I've been reading a bunch about the Nexus One that was given to Google employees and the speculations have been amazing to say the least. I won't go over the details of those speculations, but I will note that there is a trend. Early reports, those without facts to back them up, spoke to Google changing the way the cell phone industry worked.

There is some evidence of Google wanting to change how the wireless industry works. Back in 2007 Eric Schmidt, CEO of Google stated "Consumers deserve more competition and innovation than they have in today's wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet." when referring to opening part of the wireless spectrum. Keeping that in mind, what do I think is Google's long term plan? To sell advertising. More products that people use means more places where Google can sell advertising and more information they can use to deliver context appropriate ads.

Now that more and more facts are leaked about the phone, the rumors and speculation are becoming a little more believable but still are looking for Google to change the wireless industry. Why does everyone think Google is going to change the wireless world? Because they want someone, anyone to enter the market and change how things work. Open handsets on an open network is what people (at least me) want. I'm not saying cell phone companies should be giving away service for free, but I do think it's time for their ways to change. The Nexus One could, if rumors of Google selling it cost or subsidizing it themselves, be a big step in allowing people freedom of networks, but only if versions come out for more than T-mobile.

My speculations? I think that Google will sell this phone directly as a developer phone and will "let" T-mobile sell the device under their branding. Just like what we saw with the G1 and My Touch. Those were both Android Developer Phones before they became T-mobile's branded handsets. I hope I'm wrong. I hope that Google does sell the phone for $100, or $200. I hope they come out with versions that work on AT&T, Verizon and Sprint. I hope they raise the bar with competition between them and the other manufactures in the Open Handset Alliance. Doing so would hurt cell phone carriers, but not all change comes without a little pain.

What are your thoughts on the upcoming Nexus One? Will it be the savior of the cell phone industry, or will it be another developer device? Let me know!

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