Verizon's Decision a Setback for Google's Android Plans

**NewsDude** · 05-15-2008, 08:50 PM

Verizon Wireless' decision to join Sprint Nextel and T-Mobile as members of a Linux-based mobile initiative appears to have dealt a setback to Google's ambitions for its Android mobile platform. A Verizon spokesperson told the Chicago Tribune that the company joined the rival LiMo Foundation because "of LiMo's approach to providing a truly open OS that isn't simply an extension of a for-profit company's business model."
The stakes are indisputably high. According to ABI Research, 20 percent of mid- to high-end mobile phones will be running some form of the Linux operating system by 2013.
A Threat To Carriers
The success that Google has enjoyed to date is based on the relative openness of Internet browsers, and now Google wants to bring that same format to mobile devices, said IDC Senior Analyst Chris Hazelton.
"Google is interested in pushing the Web onto mobile devices and, in doing so, increase the number of Internet users, and thus increase the number of Google users worldwide," Hazelton explained. "The trouble is that Google's mobile strategy poses a threat to the offerings of Verizon and the other wireless carriers."
When mobile subscribers go to the Google search engine, Google does not share any of the click-though ad revenues with the wireless carriers unless a sharing agreement is already in place, Hazelton observed. "What the carriers really want is the ability to partner with other search-engine companies that offer 'white label' search offerings that will enable them to share in that revenue," he said.
Other industry observers find it somewhat ironic that Google has been challenging Verizon's commitment to open standards when its own Android platform falls short of being totally transparent.
"The closed nature of Google's development effort has limited the ability for both parties to have meaningful information exchange," noted Andrew Shikiar, director of...

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05-15-2008, 08:50 PM	#1 (permalink)
NewsDude Status: *** Elder Join Date: Mar 2008 Location: News Office Posts: 1,308** Spent time on board: 0:05:24 Hours Rep Power: 3	Verizon Wireless' decision to join Sprint Nextel and T-Mobile as members of a Linux-based mobile initiative appears to have dealt a setback to Google's ambitions for its Android mobile platform. A Verizon spokesperson told the Chicago Tribune that the company joined the rival LiMo Foundation because "of LiMo's approach to providing a truly open OS that isn't simply an extension of a for-profit company's business model." The stakes are indisputably high. According to ABI Research, 20 percent of mid- to high-end mobile phones will be running some form of the Linux operating system by 2013. A Threat To Carriers The success that Google has enjoyed to date is based on the relative openness of Internet browsers, and now Google wants to bring that same format to mobile devices, said IDC Senior Analyst Chris Hazelton. "Google is interested in pushing the Web onto mobile devices and, in doing so, increase the number of Internet users, and thus increase the number of Google users worldwide," Hazelton explained. "The trouble is that Google's mobile strategy poses a threat to the offerings of Verizon and the other wireless carriers." When mobile subscribers go to the Google search engine, Google does not share any of the click-though ad revenues with the wireless carriers unless a sharing agreement is already in place, Hazelton observed. "What the carriers really want is the ability to partner with other search-engine companies that offer 'white label' search offerings that will enable them to share in that revenue," he said. Other industry observers find it somewhat ironic that Google has been challenging Verizon's commitment to open standards when its own Android platform falls short of being totally transparent. "The closed nature of Google's development effort has limited the ability for both parties to have meaningful information exchange," noted Andrew Shikiar, director of... More...