Can Google Mine Mobile Gold?

by Cassimir Medford on 06 November 2007, 14:08

Categories: Computers - Media - Communications - Internet
Topics: google , AT&T , Verizon Wireless , Cassimir Medford. , SEMDirector , mPoria , Michael Bridges , Mithal , IBB Consulting , Dan Wright

 

One day after Google’s splashy entry into the mobile market, the telecom industry is still divided over whether Google can deliver on its stated goal to transform wireless.

To some, Google’s star power, its deep pockets, its ability to attract powerful allies and its consumer appeal will indeed revolutionize the wireless industry.

To others, Google’s launch of an Open Handset Alliance and its own mobile operating system promises a lot but delivers far too little by way of revolutionary prospects.

“There was absolutely nothing revolutionary about Google’s announcement,” said Sameer Mithal, senior principal at IBB Consulting. “This was basically about an operating system and an alliance of firms reacting to the Google name rather than any real substance.”

The average U.S. consumer does not differentiate between the handset, the operating system, or the application, Mr. Mithal said.

For Google, its 34 alliance members, and the major carriers, the stakes are high. The mobile web represents a new advertising frontier that many believe could equal or surpass the wired PC market.

“If Google can bring all the right players to the table, it can change the mobile market, but this will take a long time to develop,” said Dan Wright, CEO of mPoria, a Seattle-based mobile commerce technology startup.

Mobile startups seem generally excited about Google’s entry into the market. Many believe that the growth of the mobile web has been stymied by the fact that consumers are afforded too few compelling data apps.

“Some of the support for Google is no doubt based on the hope that Google can bring to the mobile web some of what it brought to the Internet,” Mr. Wright said.

But when Google has strayed from its core business of Internet search, the results have been feast or famine, according to Michael Bridges, vice president of client services for SEMDirector, a San Diego-based search marketing startup.

He pointed to the search king's failure in print as an example. But he said that Google does have a good opportunity to drive use of the mobile web and in turn draw advertising revenue.

Still, if Google can get more people using their phones through better mobile navigation tools, the company will have achieved a pretty significant milestone, he said.

For Internet surfers, Mr. Bridges said, Google offers the best tools for navigating the web. If they extend that into a usable mobile navigation for consumers, "that would be revolutionary enough," Mr. Bridges said.