Move Over AT&T, Google Becomes a Cell Phone Carrier

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The giant search engine already makes the most-used mobile software on the planet, it designs and sells phones online, and it has become an Internet service provider with its Google Fiber initiative, says money.cnn. Google Fiber is an Internet and television service provided by Google, and plans range from 5Mbps all the way to a blistering fast 1Gbps (or 1,000Mbps).

The provider even has its own VoIP phone service called Google Voice, which allows people to get a Google phone number and call people through Gmail or Hangouts over Wi-Fi.

Google is expected to pay those carriers just $2 per gigabyte, according to Macquarie Securities analyst Kevin Smithen. That means Google could choose to provide super-cheap service that gives Verizon and AT&T something to worry about.

That could happen. In 2018, Smithen believes Google will pay Sprint $750 million and T-Mobile $250 million for its service. That means even if Google chooses to break even, it could sell $1 billion in wireless services just three years from now, according to cnn.

Google is hardly the first to try its selling wireless service. Best Buy, Staples and Wal-Mart all offer wireless plans to their customers.