Project Fi is Google’s experimental and possibly disruptive foray into the mobile communications market. Their experiment is to
not build a single cell tower— it only supports one model of phone,
and is available by invite only. How can this be a business plan, let
alone disrupt the wireless business?
House divided
First understand that the United States is a house divided in regards to cellular service. There are basically four main companies: Verizon, AT&T, T-Mobile,
and Sprint, that provide the primary wireless network infrastructure for the U.S.
Those companies support two different technologies. Verizon and Sprint use a
wireless technology called CDMA and AT&T and T-Mobile use a technology
called GSM, which is also used in Europe and many other places around the
world. The technologies are not compatible and this is why you can’t take your
Verizon phone and use it on AT&T and vice versa. Verizon and AT&T have the
largest subscriber base, primarily because of their much broader networks, or
simply put, they work better in more places. T-Mobile and Sprint both have
very good, and perhaps underutilized, networks, but don’t have coverage areas
that match the big two and have to struggle to keep and capture new customers. These networks support talk, text and the gorilla in the room, DATA. The
technology
by Stephen G. Swart
why
A new spin on existing technology
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