A Google (GOOG) Phone Deal Monday Could Drive Sprint (S) Shares

Telecom & Wireless

Published: November 4, 2007 7:03 am

It now appears that Google (GOOG) will announced its new mobile phone product on Monday with its first US partners being T-Mobile and Sprint (S), according to Fortune.

“Any device Google brings would be a big positive for the entire wireless industry,” says Robert Laikin, CEO of wireless distribution company Brightpoint speaking to the business magazine. That change may not be welcome at the two largest cellular service providers, Verizon Wireless and AT&T (T). They rely on closed operating systems to control what software and services will run on their handsets.

The new Google mobile OS will have the company’s search, G-mail, maps, and YouTube services on it. But, it will allow developers to build their own applications for the phones, a sharp departure from the proprietary platforms that now rule the industry.

The deal with Sprint gives Google access to a customer base of over 50 million. And, it gives the No. 3 cellular provider a much needed product to help increase it moribund subscription growth.

A strong partner and a weak one. How novel.

Douglas A. McIntyre

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