Open Google Phone? The bets are opened!

If you believe that Google phones will open telecoms networks to a myriad of garage developers of cool multimedia cell phone applications, think twice.

Will the operators REALLY accept anybody to offer just anything on THEIR precious « walled garden » networks ?

Really ?

If the operators had wanted to get an application layer to accept third-party software applications, they had the opportunity to do so a long time ago, and they did not need Google’s engineers for that.

Let’s look at what’s happening in Europe, a more mature market for telecoms.

Years ago, I used to be part of a sales team proposing Linux-based open-platforms to do just that, to enable new external applications on cell phones. Forget it. « No thank you » was the operators’ answer.

Instead, operators have invested in their own internal team of developers, of course opening to any applications as long as they stay captive of THEIR phones on THEIR network. Today, on top of different OS, like Nokia Open (sic), you have Orange Partners, O2 Partners… you get it.

The operator’s interest is to keep customers captive on a 2-year contract. Final.
Interoperability and open networks have been issues for years, because these issues benefit operators.

Why a US operator would act differently ? Well, maybe because they are prisoners of limiting former technology choices, are now struggling to keep market share and investors’ interest, and are failing to come up with a marketing strategy compelling to customers.

The only national brand that was dynamic and successful with the youngsters, Cingular, was killed. Great marketing strategy, really, IMHO...

Sprint is losing market share, at the rate of 220,000 customers a month, according to the NYTimes.

T-Mobile’s market share looks steady but suffers from a lack of data and spectrum strategy, according to Merrill Lynch.

Verizon is gaining market share, remarkably they left the Google’s partnership race. Orange, and other Europeans giants, would die for a share in the US market, and that may be what will move things up.

So… T-Mobile and Sprint have nothing to lose. Let's gossip and say that Google Phone will have to partner only with telecoms dogs, starving for some marketing meat – marketing for free because the PR will do it.

The same way you have to cope with AT&T’s infamous bad customer service together with your iPhone, your future shining googling gPhone will still be opened... to the ol’ same operators.

Good luck Google, small telecoms businesses will cross-finger for you, you will need it !