The world’s most popular search engine company, Google Inc (NASDAQ:GOOGL), is getting into the wireless service sector as the company joined hands with Sprint Corp (NYSE:S) to offer wireless services. The search engine giant would use Sprint’s network while maintaining its own customers support and billing services. The shares of Google soared in excess of 3.25 percent after the announcement.
According to the sources, Softbank Corp.’s president, Masayoshi Son, played a crucial role in facilitating the deal under which, Google Inc (NASDAQ:GOOGL) would purchase network resources for mobile voice and data calls from Sprint Corp (NYSE:S). The search engine company has named the project “Nova” and it is likely to be launched later this year. The company will offer wireless services to its own customers and act as a virtual network operator in the process.
As per expert view, Google Inc would offer hardware products to its customers, although it is likely to raise competition among other companies using Google’s Android operating system. Google Inc (NASDAQ:GOOGL) has done so earlier with its broadband internet service and Wi-Fi hotspots. There are some speculations that T-Mobile US Inc (NYSE:TMUS) would also provide network resources to the search engine company. In this way, Google won’t have to spend resources in establishing and maintaining a wireless network.
There were no official confirmations from Google Inc (NASDAQ:GOOGL) or Sprint Corp (NYSE:S) either.
Some experts are opined that this is another long shot from the search engine company to strengthen its ecosystem by connecting more users with wireless services. It will allow the company to offer mobile adverts to its customers and considering the fast growth of mobile advertising industry, it will help the company to generate prolonged growth.
The shares of Google jumped 3.25 percent closing at $537.30 and Sprint Corp (NYSE:S) lost 2.28 percent share value closing at $4.29 at the end of the regular trading sessions.
This article has been written by Prakash Pandey.