Google makes WiMax pact
2007-07-27 07:13
New York - Google Inc plans to offer
internet search services in a web portal Sprint Nextel Corp is
developing for its WiMax high-speed wireless service, the
companies said on Thursday.
The agreement, which is Google's closest alliance with a
major US mobile service provider, is expected to boost web
access over Sprint's new network and improve use of Google's
search and communications services on mobile devices.
While Google, the world's leading web search company, has
agreements with overseas mobile providers, analysts say it lags
Yahoo Inc in the US mobile web market.
"This seems to be a bigger deal than what (Google's) done
in the past, more comprehensive," said Pacific Crest analyst
Steve Weinstein, who expects wireless services to be a "very
material driver" for Google by late 2008 and early 2009.
Google has said wireless is key to its growth and its
strategy of selling internet advertising.
Google is in the midst of a lobbying battle over rules
governing an upcoming US government auction of airwaves. The
company has told regulators it would take part in the auction
and meet the minimum required bid of $4.6bn if regulators
added a sale condition that Google said would promote an open
wireless market.
Goal to reach 100 million people
Sprint's Chief Technology Officer Barry West said the deal,
which makes Google Sprint's exclusive search provider for WiMax
service, should help raise Sprint's image as a provider of
wireless web services.
"If you think of the internet you automatically think of
Google," West said. "Obviously having a powerful partner on the
internet helps us become synonymous with the mobile internet."
Sprint said it would combine technology for detecting user
location with Google tools including e-mail and chat on devices
running on a high-speed network Sprint is building based on
WiMax technology.
WiMax offers web access speeds five times faster than
typical wireless networks, though they are still slower than
wired broadband.
For example, users could use Google to search for a
pizzeria without having to enter a ZIP code or have the phone
automatically broadcast their whereabouts to friends when they
are setting up a meeting using Google Talk instant chat service
or e-mail on their phones.
West said Sprint would not charge users for Google
services, which will be supported by search related
advertising. Google and Sprint will have a revenue sharing
agreement for the advertising.
Sprint, the No 3 US mobile service, has envisioned the
WiMax network serving a host of consumer electronic devices
such as cameras or media players. It expects the portal to work
on a multiple devices.
Some analysts had questioned the wisdom of Sprint betting
on an unproven technology, but JPMorgan analyst Tom Lee said
the Google deal should ease any investor concerns about WiMax.
"It really strengthens the legitimacy" of WiMax, Lee said, adding it would also help create interest among consumer
electronic companies to make WiMax compatible devices.
Sprint plans to connect its WiMax network with that of
Clearwire Corp to allow customers to roam between both
networks.
The agreement with Google could potentially create a new
business for Sprint and Clearwire, according to Lee, who said
Google could use their WiMax networks to connect short-range
wireless hotspots it is building in San Francisco.
Sprint plans to test the WiMax service in Chicago,
Baltimore and Washington by the end of 2007, with a goal of
attaining coverage for 100 million people by the end of 2008.
- Reuters