The Wall Street Journal and the New York Times are reporting that a new Google phone being tested by employees may be one whose software is designed from the ground up by Google, and that it may be unlocked.
TechCrunch has been following Google twitterers and their friends who are saying things like:
“Supposedly, Google employees were given tons of these phones today. unlocked,”
and
“A friend from Google showed me the new Android 2.1 phone from HTC coming out in Jan."
That's going to piss off a lot of cell carriers. They've begun adopting the Google phone, and they want to sell it themselves. By giving a discount for the phone, the telcos can keep people locked in for another two years.
The telcos have never grown out of their monopolistic roots. They're anchored to the tactic of maintaining as much of a monopoly as possible by making it as difficult as possible for customers to leave. Imagine buying an unlocked Google phone and having the freedom to switch cell services any time you think another company has something that better suits your needs.
Horrors! The wireless carriers would actually have to try to compete on the basis of quality of service, customer service, pricing, all those free trade capitalist techniques they abhor.
If the rumor is true, there's going to be a war. Google has kept saying it doesn't want to brand and sell its own phone. But that's a promise that Google management is constitutionally unable to keep.
Whenever Larry Page sees a completely screwed up industry that charges too much, provides poor service and -- most importantly -- affects people's ability to get online with speed, he tries to figure out a way to change it. He considers one of Google's major roles to be acting as a catalyst for change.
After all, if people have lousy internet service, it's harder for them to use Google products. And if Larry and Sergey want to really bring all the world's information to everyone, we have to have a strong internet with fast access.
The cell carriers are taking too long to do this, so Google is going to give them a kick in the ass. Assuming the rumors are true.
I really hope they are. I hate Verizon, and it has the best service available in my area.
Follow the conversation on Twitter at #googlephone