What Google's Entry into Phone Biz Means to You

From the hype leading up to today's announcement you'd think Google had invented a mobile phone capable of solving global warming. But in reality Google didn't announce a phone. Instead Google announced during a press conference an open mobile operating system called "Android" that developers can build applications for.

That may not sound too sexy, but the implications are huge for consumers who are largely stuck with mobile devices with a limited ability to surf the Web, play games, and connect to popular services like Facebook. Sure, you're mobile phone today already lets you do a lot, but if Google and its 30-plus Open Handset Alliance partners have it their way, you haven?t seen nothin' yet when it comes to advanced mobile applications.

Google anticipates Android will deliver a vast array of mobile applications from social networking services that can alert you when a friend is nearby, to easy access to multiplayer mobile games, to services that allow you to customize your cellphone's start screen.

If you were hoping for a gPhone, you'll be disappointed by today's news. Google left open the possibility of a creating hardware for its mobile OS, but says it has no announced plans. Instead you can expect during the second half of next year Google partners to come out with cell phones, mobile devices, and even GPS gear running the Android mobile operating system.

What Google is attempting to do is disrupt the mobile-phone status quo which currently doesn't allow you to easily access third-party content or mobile services from your phone. For example Verizon Wireless creates a walled-garden of content and limits your options of mobile services such as instant messaging, videos, and music downloads.

Google hopes to break down the walls wireless carriers create with a mobile operating system allowing you to have access to mobile apps and service with the same freedom you do with your PC.

Google's biggest hurdle is getting handset makers like Palm, Motorola, and LG to put its Android operating system on. The other half of the battle is getting wireless carriers to make a G-powered phone available to its customers. To that end Google moves several steps closer to realizing its mobile dreams with announced hardware partners LG, Motorola, and Samsung who are part of the Open Handset Alliance. Wireless carries also participating in the Open Handset Alliance are T-Mobile and Sprint.

Google's news today comes with one big caveat. Wireless carriers who may sell Google-powered handsets may choose to restrict access to third-party mobile services the same way they have in the past. That's because under the terms of the open-source platform Android anyone can customize the mobile OS to be as free or closed as they choose.

Consumers would also be naive to believe Google didn't intend to make Android a springboard to selling tons of ads on cell phones. That could be a negative for cell phone users. Just as Google intends innovative new mobile applications and services to be available to consumers via its Android OS, you can expect new innovative forms of advertising as well.

Google, I predict, would profile you as effectively as it does online, displaying contextually relevant ads that are tailored not only to your online profile, but your cell phone habits as well. Did you call your healthcare provider today? Maybe you'll get an ad for WebMD in Gmail. Did you call a hotel in Denver, pizza delivery, or a travel agent? I can see the Google AdSense ads already.

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