Rumours point to Google becoming an MVNO

Rating: Based on blurred pictures on Spanish Android phone

Details are very scarce but the cellular world has been rocked by suggestions that Google could well be in the throes of becoming an MVNO (Mobile Virtual Network Operator). It’s not so unbelievable given that the famed search engine company has begun to compete directly against its supporters in the smartphone manufacturing business through its acquisition of phone maker – Motorola Mobility. So it could easily decide to go up against another key bunch of its supporters – the cellular network operators themselves. The million dollar question is … which mobile operator is brave enough to carry Google’s voice and data traffic over its network? GoMo News reckons that there’s a good chance it is Telefonica.The pictures on the Spanish news site show a handset connected to a network simply named Google_Es.

Now there are only a small number of operators who could provide Google with an MVNO capability in Spain.

Telefonica is the prime suspect for several reasons – mainly because it is the dominant local telecoms company.

If you were going to forge an alliance with erstwhile competitor – Google, then you want to test out on your home turf – Spain.

If the deal is being struck with Vodafone Spain, then you’d expect that operator to test out first in its home market which is the UK. Not in Spain.

We think Amena – the only other logical alternative – is too small to be a contender.

There’s another conclusion which industry watchers could easily jump to. That’s the assumption the deal covers voice as well as data. It’s feasible that Google – the MVNO – could be data only.

However, that’s highly unlikely. While dual SIM handsets are common in China or Africa, for example, such handset usually aren’t USIM (3G SIM) devices.

If Telefonica really has decided to grasp the bull by the horns and forge an alliance with Google, then it can benefit in all of its territories. Its other brands like O2 are pretty strong in Europe.

But being able to piggyback on the Goolge name in Latin America might prove extremely handy, for instance.

The whole MVNO scare might prove groundless. But GoMo News reckons there’s enough logic in such a move for it to prove a real game-changer.

Incidentally, the main source of the rumours is Andreas Bernström, CEO with Rebtel, the mobile VoIP specialist, writing here.