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Google's grand handset plans

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Working to open up the broadband spectrum in the US is not enough. Google (NASDAQ: GOOG) wants consumers to connect their devices to the internet without having to pay charges to carriers, but its grand plan goes beyond that.

According to a report in The Wall Street Journal, Google is pushing both handset companies and cell carriers to use devices loaded with the search company's software. The company hopes that this foot-hold will allow it to become a leader in wireless advertising.

Several companies are recoiling from Google's advances. Verizon Wireless says Google wants too large a piece of the advertising carried on phones.

Google's plans may not work out. Handset companies and cell operators like T-Mobile have probably already convinced themselves that allowing consumers to download their own preferred search and GPS functions or to offer a broad spectrum of these services pre-loaded onto phones is the way to keep people happy. Not everyone want to use GMail or Google Maps.

Google wants to drive a wireless market where the hallmark is choice for the consumer. Open spectrum that allows devices to connect to broadband over the air would permit handset owners to use their phones to download a huge number of software applications without paying a toll.

But, Google's actions say that those applications should be the ones that it builds and not those from its competition.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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Last updated: November 22, 2009: 04:33 AM

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