Google Inc (NASDAQ:GOOGL) is all set to enter the Wi-Fi domain as it announced its foray in the wireless services in the U.S. on Thursday. In the beginning, the company would be offering the new service to 34 cities and this has definitely got the analysts taking notice. While for some it sounds trouble, others are happy about the decision of Google to diversify.
Called the Project Fi, currently this wireless service was only available to invited Motorola Nexus 6 smartphone users. The best part is that this product is very flexible and in the absence of a Wi-Fi network, it shifts to the cellar networks of Sprint and T-Mobile as well.
Competition To Smaller Players
The main jolt of Google’s entry in this domain is going to hit a smaller player Republic, even as the company was optimistic.
David Morken, co-founder of Republic said that Google was like a celebrity and they felt that a famous person had become their neighbor and so they would give the company a warm welcome and be good neighbors. Republic is threatened as it is a new company, while others like Scratch Wireless and Freedom Pop see no immediate danger of Google’s entry in the domain.
According to telecom analysts, Republic may stand to gain from Google’s entry as it authenticates the Wi-Fi-first notion. Republic could tie up with Google to sell more devices by using their technology and offering customers a great experience at affordable prices.
Google Faces Allegations
This announcement has been made on the heels of the allegations by the antitrust officers from Europe. They said that Google favored its own shopping sites over competitors when they made online searches. The European antitrust officers claimed that they were keeping a special vigil on the mobile systems that were only using the Google search engines to check the dominance of the search results. This revelation has also created doubts among the American antitrust officials and they are also on the heels of Google on the same.
There have been no comments from Google Inc (NASDAQ:GOOGL) on their entry in the wireless services industry and it seems that it will take some time to prove its mettle.
