Google’s Project Fi is all the hype today. Blogs are going nuts, people are going nuts and even participating partners are partying it up. We have seen announcements coming from Google, Motorola and even T-Mobile.
You may have noticed there is one party missing – Sprint. Why? We understand they are just the ones providing the network, but is there a reason why T-Mobile is much more excited about this than the Now Network?
I mean, it’s John Legere we are talking about here. He is excited about everything and has absolutely no fear of disclosing his emotions. T-Mobile may be especially fond of this deal, though. There are multiple ways in which Magenta could gain from this partnership.
Disrupting the industry
In his blog post, John Legere mentions Google is giving customers and companies something to think about. The Search Giant is working a very unique angle, and “anything that shakes up the industry status quo is a good thing”.
In a way, Google Project Fi and T-Mobile are very similar. They both work very different from the “traditional” carriers and offer great deals to their customers. Plus, T-Mobile is fighting against to giants (AT&T and Verizon) on its own. The carrier definitely needs a partner to stand by its side, which leads me to the next point.
Google is one hell of a partner to have
Competition is fierce, so any company should stay close to its partners. And what better partner to have by your side than the behemoth that is Google? This will strengthen their relationship and build a road that both companies could later walk together.
Google runs a lot of the tech industry. They own the most popular mobile OS in the world, for starters. Not to mention Google Search, which has grown to immortal proportions. There’s also chrome,a dn the list goes on. You get the point – having Google as a friend is a big deal.
This thing is all but guaranteed to take off, and T-Mobile will have the biggest piece of the cake once this happens. We now know Project Fi will automatically select the best connection around, which gives the winning hand to T-Mobile (in most areas). John Legere misses no chance to talk about its competitors, so you can be sure he mentioned this in his blog post.
“Since the cellular connection will be made based on network speed, we expect to capture the largest share of traffic coming from Project Fi customers – and chances are good that these customers are going to be riding on America’s fastest nationwide 4G LTE network. The T-Mobile Data Strong™ network!” -John Legere, CEO of T-Mobile
And of course, the more people use T-Mobile’s network, the more money transferred over to T-Mobile’s bank accounts.
Expanding the network
Project Fi offers what no other carrier can, but it will likely bring a heavy load to T-Mobile. The deal is that it should also bring a lot of cash to T-Mobile, which means the carrier will have more power to grow.
It’s a win-win: T-Mobile can gain more users without doing the ground work and Google can focus on the ground work without focusing on building a huge network.
Raising T-Mobile’s value
So we all know T-Mobile has been trying to get acquired for a long time. Deutsche Telekom no longer wants to carry its weight. This likely the main reason why the carrier is so competitive lately. They want their numbers and income to rise, further enticing companies to purchase them.
Who knows… maybe Google will acquire them at some point. That may sound like I am pushing it too far, but it would kind of make sense if Google wants to really take this to bigger proportions.
What do you think?
Do you agree with me, or am I going nuts? Let us know what you think in the comments. And Please do share if you can come up with other reasons as to why T-Mobile is so excited about Project Fi.