Mobile Entertainment

This morning, Google announced what it is calling the world’s first truly open mobile handset platform, as well as the formation of the Open Handset Alliance. Google is claiming this platform will speed innovation of mobile applications and services. However, as a white label mobile search and advertising provider, it is JumpTap’s belief that although this move will be helpful in the battle towards open standards, it is a potential blow to carriers and advertisers.

Google’s announcement may be misconstrued as a forum for interoperability to advance mobile applications and services, yet it is actually a part of Google’s multi-layered strategy to win over the wireless search and advertising industries and commoditise all key players. By losing control of key services such as search and advertising, operators are at risk of losing everything – customer data, their brand, revenue and ultimately the customer.

Google’s monetisation engine is fueled by the growth of the off-deck universe. It is motivated to accelerate the migration of off-deck traffic and pose an immediate threat to existing operator revenue streams. Operators have the bulk of mobile Internet traffic today, which is why direct to consumer sites Google and Yahoo are partnering with operators. Their goals however are to keep growing their D2C sites so they do not have to share revenue. Google’s wireless platform initiative is a clear indicator that Google is moving in that direction.