Google's holistic approach to the wireless space gives real credibility to the Gphone rumors. Our writer maps out the internet giant's mobile strategy.

Google's wireless plans and its rumored "Gphone" have been the topic of many articles and blogs. We have to take a closer look at several Google initiatives to get a better understanding of what Google's "Master Plan" is really all about.

First of all, few may know that Google is the largest controller of dark fiber in the world. Dark fiber, as defined by Wikipedia, is "the name given to individual fibers that have yet to be used within cables that have been already laid. They are hence not yet connected to any device, and are only there for future usage." Google has been buying up dark fiber since the dotcom collapse of the early 2000s when telcos overbuilt their networks in anticipation of the internet boom. Google's strategy is to build out its own Global IP Network, be less dependent on telcos  and save billions of dollars in the long run. By forecasting its bandwidth needs, Google knows that it's not only cost-effective to build out its own Global IP Network, but even more importantly, such a move will give Google full control of its own network infrastructure. This is known as a "vertical integration" strategy that is practiced by many of the world's largest multi-national companies. In fact, Google recently announced that it's planning a multi-terabit undersea communications cable across the Pacific Ocean. The cable will connect the U.S. to Australia via Hawaii, and it's said that it will dramatically cut data transmission cost to many of the Pac Rim countries. 
 
Now that Google has its Global IP Network infrastructure initiative in full gear, what will the company do? Well, Google recently announced that it has set aside $4.6 billion to bid on the upcoming 700MHz wireless auction. The 700MHz wireless spectrum is currently owned by broadcasters and has been used for analog television. The 700MHz spectrum will be highly sought after for it has the unique qualities of long distance transmission and the ability to deliver broadband communications that can penetrate walls. Google recently announced that it may also be interested in bidding on a 900MHz & 1800MHz wireless spectrum in the UK. Google might be planning to start its own mobile service in the UK or establish an open wireless-broadband network as it is trying to do in the U.S. 
 
With its wireless initiatives in play, Google has hired Andy Rubin, founder of Danger and the "Sidekick" to head the 100+ Gphone team. According to Venture capitalist Simeon Simeonov, Google's Gphone is codenamed "Switch" and is using wireless technology from two companies Google acquired, Skia & Reqwireless. Google partnered with Samsung earlier this year, giving it the ability to be a potential distributor/handset maker. Switch is a "BlackBerry-like device," according to Simeonov, running Java on a C++ core with perhaps a Linux bootstrap.
 
So how do we make "Google Sense" out of all this? Well, I believe that if Google is successful in its bid for the 700MHz wireless spectrum, it will launch some very innovative products and services, one of which will be a wireless IPTV service to the premise via set-top box connected to a $100 Network computer. This computer will have no hard drive; all windows type applications will be hosted on Google's servers. Google has already filed for a patent that will enable users to make payments at stores using their mobile devices. This service is going to be called GPay. Even more compelling, I anticipate Google launching an ad supported mobile "video" phone that will rival Apple's iPhone. If Google is going to become a mobile provider and take on Apple’s iPhone, the company will need to have a compelling service offering. If its bid for the 700MHz wireless spectrum is successful, launching an ad supported video Gphone will not be hard to do. I can see it now, being on a "video call" while ads stream across the bottom of the Gphone screen.

Neville Colaco is business development/sales executive for Zedo. Read full bio.