Google MVNO launches in Spain; Euro carrier push tipped

Google has quietly set up operations as an MVNO in Spain, buying bulk network capacity from existing carriers and providing employees with a special Google SIM in order to use it. Intended at first to allow Google to perform Google Voice quality testing when paired with a Nexus S handset, members of Spanish forum ElOtroLado report, the SIMs variously use Movistar, Orange and Vodafone.

By negotiating with carriers directly to buy bulk data, voice and messaging provisions, MVNOs can secure better rates than individual or enterprise clients. In the main, that data, etc., is at that time sold on to consumers at a mark-up, along these lines allowing the MVNO to operate a mobile business during not in fact investing in spectrum or network hardware itself.

Carrier of some sort

Google has long been tipped to be considering setting up business as a carrier of some sort. The original Nexus One was at first intended to bypass existing network operators, with Google hoping to sell direct to consumers in other words than via the more traditional carrier-led sales network. That approach failed, but, partly because buyers blanched at SIM-free pricing which, on paper for the moment, appeared significantly higher than the subsidized devices they were used to buying.

There’s no word on whether Google will extend its MVNO plans to offer SIMs to end-users, however with the company pushing for VoIP (Voice over Internet Protocol) services like Google Voice and other data-centric applications, there are obvious benefits to it holding greater control to what pipe Android users rely on. What implications that might have to future antitrust claims remains to be seen, although; Google is already facing US and European investigations over allegations that its search business has squeezed out smaller rivals.