Who Does Google Really Compete With?

It never is too hard to find a communications executive or company that worries about what Google might do next, or where Google might compete directly with service providers. 

In an abstract sense, Google evokes fear because of its ability to innovate fast, its ability to surround a competitor or business, its cash, its ambition and only as a byproduct its ability to make itself the "thing" consumers bond to, not the ISP dumb pipe. 

Of course, the perceived "threat" is very concrete to some contestants in the communications ecosystem.

The NexusOne handset means Google is a device supplier. The Android handset operating system makes it a major mobile supplier to many other original equipment manufacturers, and gives Google influence over the pace and direction of mobile OS development. Google Play is among the handful of truly significant app stores. 

Google's investment in Clearwire, and past willingness to bid on 700-MHz Long Term Evolution spectrum, mean Google potentially could be viewed as a future access provider in its own right.

Google Fiber, even if only at one location, has become a reality. And some might point to Google Voice, or Google's ownership of dark fiber as other ways Google already is a part of the industry ecosystem.

Google also was on the other side of the net neutrality argument from most service providers.
 And Google Wallet does compete directly with Isis, the mobile wallet backed by AT&T, Verizon Wireless and T-Mobile USA.

Google continues to experiment with mobile and untethered access networks. You might argue Google still has a clear and simple business objective. It makes its money from Internet advertising. People who do not have the Internet cannot become prospects. So Google wants everybody to have Internet access.

Ad inventory also hinges on access speed. Faster page loading, for example, also means Google can display more inventory. In a real sense, ad inventory is contingent on access speed. Experience also shows that faster speed leads to higher usage, and hence more potential to show inventory.

But some would argue that despite its potential future competition with communication service providers, Google has other bigger challenges to face, including Facebook, other search providers, Microsoft and Apple.

And some might even argue that, given the growing importance of mobile "search," commerce is becoming more important. And the firm most significant in that area is Amazon.

That isn't to say there is no scenario under which Google might entertain becoming a mobile service provider, in some way. But that is more attractive to Google only if the biggest ISPs fail to upgrade their networks or extend coverage. 

In the meantime, Google faces greater immediate challenges from the likes of Apple and Facebook, as well as future challenges from the likes of Amazon.