Google wants to be your phone carrier
Google announced on April 22nd of this year a new program called Fi. Fi combines the wireless networks of Google carrier partners Sprint and T-Mobile with more than 1 million free, open Wi-Fi hotspots Google has verified as fast and reliable.
Rumors that Google intended to enter the mobile virtual network operator field have been circulating since early this year. Users’ devices will move automatically to the fastest connection 4G LTE being the standard in the United States, accessing 3G or 2G if only those speeds are available. The program will work in more than 120 countries. Users can request an invitation to join the program. They can expect a response within 30 days.
Plan Benefits
The $20-a-month Fi Basics plan gives users unlimited domestic talk and text in the U.S., unlimited international texts, Wi-Fi tethering capabilities, and access to international calls at Google’s rates.
Users also will have to pay a $10 a month per GB of data, whether used within the U.S. or abroad.
The cost of the unused portion of the monthly data plan will be taken off the following month’s bill. Excess data use will be charged at $10 per GB. Download speeds outside the U.S. will be 3G. In my opinion, the pricing system is groundbreaking and could resonate with consumers specifically small businesses.
Where the Pain Begins
Fi is a no-contract program, but unlike prepaid plans, users will have to pay taxes which can amount to 20 percent of the bill.
4G Fi coverage is best on the East Coast and in the southeastern U.S. It’s spotty on the West Coast. Large parts of the rest of the U.S. are restricted to 3G or 2G networks, the Google Fi coverage map shows.
At present, Fi works only with Google’s Nexus 6, which will set users back $650 or more, plus applicable taxes. Those who already have this phone will get a free SIM card if they’re accepted into the program.
Emptying Consumers’ Wallets
Consumers with a wireless plan will have to pay termination fees set in their contract, which might be expensive. The average 4G smartphone user consumes nearly 2 GB of cellular data monthly, and that’s likely to double by 2018. So, while on the surface the Fi pricing may appear attractive, heavy data users may not save as much on their monthly bills as they anticipate. The average U.S. smartphone user downloads about three times more data over Wi-Fi than over the cellular network, so some of the perceived advantages of the Wi-Fi offload may be exaggerated.
The Impact on Carriers
The Fi program’s pricing scheme might spur Tier One carriers to follow suit. Meanwhile, T-Mobile and Sprint might be forced to build out their 4G LTE networks, which will be expensive but by cutting a deal with Google, they are looking for a short-term play for perhaps long-term gain and that remains to be seen. Still, Fi could open up service to many more devices. Sprint had a deal some time ago with WiMax. Data share plans add more monthly fees per device on top of the data bucket needed, so it gets to be too expensive. Fi will help put competitive pressure on Verizon and AT&T, which might lose subscribers to their program.
