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Google Is Paying Carriers and Phone Makers to Adopt Android

March 30th, 2010

According to various reports it appears as if Google has been paying carriers and phone makers to adopt and deploy their Android phones like the Nexus One.  According to sources cited by MocoNews the payments to the wireless network operators and handset manufacturers have been in the form of an ad-share deal that provides these companies with a portion of advertising revenue generated by Google search results on those handsets.  When asked for a comment Google stated that they share revenue on search not on mobile applications.  The same is true for non-Android devices that use Google as the default search engine as well according to Google.  When the wireless network operators and mobile phone manufacturers were contacted about the arrangement they stated that they do not comment on existing business relationships. 

The news of these deals could forever change the mobile landscape.  With Google able to promise revenue from ad-sharing deals smaller, cash strapped mobile device companies may not be able to compete with the giant that is known as Google.  These smaller companies will not be able to strike up the same sorts of lucrative deals that Google can which will further hinder their ability to become successful in the mobile marketplace. 

While we all knew just hot big and powerful of a company Google was we may not actually know the full details surrounding their influence.  With the ability to throw extra revenue at wireless networks and mobile phone manufacturers Google is setting itself up so that it can dominate the mobile marketplace.  These other companies would be foolish to not carry Google’s mobile devices and take a piece of the free money that Google is offering from their search engine results.

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Related posts:

  1. Nexus One launches on Vodafone UK this Friday, April 30
  2. Google changes Nexus One plans, will stop selling handsets online
  3. Android 2.2 ‘Froyo’ and Flash run great on Nexus One
  4. Microsoft says Android infringes on its patents, licenses HTC
  5. Great eBay App for Android

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