Google gets into the wireless business

When Google came on the scene 10 years ago, the PC business was pretty much figured out. Lots of companies made computers, but Microsoft monopolized the operating systems that ran on them. It was Microsoft's world, and as a software developer Google had to learn to live in it.

Not so with cell phones. There are lots of handset makers, and several companies make operating systems and other software for the devices. Google either has to play ball with those companies or control the mobile environment on its own.

Enter today's announcement of a Google operating system that will prominently feature the company's applications -- mail, maps, search and so on. And Google is going to entice handset makers by giving them the system for free. The phones probably won't have the name Google anywhere on them, and the first ones won't be available until the second half of '08.

This is a tough road for Google. People just want the best phones out there. Google's software has to be as good, if not better, than anything Microsoft, Symbian or Apple has to offer. Web searching has to be fast. Video should be seamless. Maps and directions can't be buggy.

In other words, Google has to nail this. As in better than iPhone nail this. If it can't, then don't expect handset makers to be on board. There are more issues here to consider as well:

Carriers are important. Google is doing a lot to appeal to the guys that make phones, but what about the carriers? AT&T and Verizon aren't part of the alliance of companies supporting Google's efforts. Sprint and T-Mobile are showing initial support but aren't publicly committing to the system. Why would carriers want to be a part of this?

Why would I want one? I haven't seen anything yet that would make me want a phone with Google's software on it. Google's Andy Rubin says Google's phone will have lots of Net applications, which will distinguish it from others. But you can bet that competitors are working on this as well.

What about advertising? Google makes its money from selling ads. It's giving the phone software away for free. Are the phones going to be stuffed to the gills with ads?

News By: MSN Money