Tuesday, November 6, 2007

Google opens battle for mobile Internet

46 minutes ago

SAN FRANCISCO (AFP) - Google has opened a battle for dominance of the mobile Internet with a broad alliance of companies backing its "open source" software for mobile devices, analysts say.

The announcement Monday of the "Android" platform aiming to bring the full power of desktop computing to mobile devices represents a challenge to Microsoft and Apple, and also firms like mobile phone maker Nokia, which is not part of the "Open Handset Alliance."

The announcement surprised analysts who had expected Google to announce the launch of its own gPhone to compete against Apple's popular iPhone.

"This is not about a Google phone," said telecom analyst Jeff Kagan. "This is about the growing and changing software experience for mobile phones. Cellphones are becoming the third screen in our lives. Television, computer and next is the mobile handset."

Greg Sterling, analyst at Search Engine Land, said Google is taking on companies like Microsoft, which has its own Windows Mobile platform for smartphones.

"Android is clearly competitive with proprietary mobile operating systems such as Windows Mobile, in the same way that the open source movement competes with many of Microsoft's core products," Sterling said.

But he said prospects for the alliance remain unclear, especially with key holdouts like AT&T, the largest US mobile operator, which has an exclusive deal with Apple's iPhone.

"Will Android-phones -- or an actual future gPhone -- be an iPhone killer? Expect in the wake of today's news a range of headlines declaring this to be the case. But until phones come on the market, no one can tell," Sterling said.

Analysts say Google is eager to become the key search engine for mobile phones and to get the advertising revenues that are starting to become available for the platform.

Michael Gartenberg of Jupiter Research said Google's plan may be attractive by sharing some ad revenue with mobile phone operators looking for new sources of cash to subsidize costly smartphones.

"If Google can deliver, the impact could be huge," he said. "At a time when both carriers and handset vendors are looking to cut costs and at the same time consumers are embracing more functionality in their mobile devices, Google could be coming to market with the right product at the right time."

But he added that other competitors may fight the Google effort to control the mobile phone.

"There are going to be challenges," Gartenberg said. "Neither Microsoft, (mobile maker) Research in Motion or Nokia are going to roll over and play dead with this announcement."

Google said the new initiative, which should be available next year, offers first comprehensive mobile operating platform that software developers are free to adapt in any ways they wish for video, audio, social networking and other features.

The 34-member alliance includes China Mobile, HTC, Intel, Motorola, Qualcomm, T-Mobile, Telefonica, LG and eBay.

Google chief executive Eric Schmidt declined to reveal whether the US-based Internet search colossus will release its own phone based on Android, which will allow for services and features supported by online ads.

"If you were to build a gPhone you would build it out of this platform," Schmidt said.

"Imagine not just a single Google phone, or gPhone, but thousands of gPhones made by a variety of manufacturers."