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Google Is Paying Carriers and Phone Makers to Adopt Android

Mar 25, 2010, 2:40 PM by Eric M. Zeman
updated Mar 26, 2010, 12:08 PM

According to two U.S. network operator sources cited by MocoNews, Google has been paying the wireless network operators and handset manufacturers to adopt and deploy the Android platform. The payments are in the form of an ad-share deal that provides the operators and OEMs with a portion of advertising revenue generated by Google search results on those handsets. Google said, "We share revenue on search, not on mobile applications. The same is true for non-Android devices that use Google as the default search engine." Google would not elaborate on how the deals work. "Any terms of our agreements with partners are confidential." In an email to Phone Scoop, Motorola spokesperson Kathy van Buskirk said, "As is our normal policy, we don't comment on details of our vendor or technology provider relationships." T-Mobile spokesperson Erica Gordon said, "T-Mobile does not comment on their business relationships." AT&T spokesperson Seth Bloom said, "We don’t comment on business relationships." Phone Scoop has yet to hear back from HTC, Samsung, and Sprint on the issue. By offering network operators and handset makers cash to deploy Android, Google more or less paid for the platform's success and expansion to-date. This has and may continue to change the competitive landscape of the wireless industry. Cash-strapped companies may not be able to strike the same deals with wireless network operators that Google can.

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Comments

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This forum is closed.

bluecoyote

Mar 28, 2010, 9:18 PM

AT&T laughs, Palm sighs

So Verizon, Sprint, and T-Mo are all striking deals to push Google's fragmented platform. Google gets a healthy ad cut while they scramble to push a Droid over a Nexus One over a Hero (incredibly, none of which run the same version of the OS right now and all of which are piles of crap.) Of course, none of that ad money goes to covering the ETF or lowering the handset cost or keeping the handsets up to date or lowering the service cost....

Meanwhile, AT&T has the iPhone which gets continued development and support. I'm pretty sure AT&T is laughing all the way to the bank. I'm willing to bet Verizon, knowing the long-term outlook on Android would drop every pathetic smartphone they sell to be in AT&T's shoes.

Palm is in deep crap, too. ...
(continues)

RockTripod

Shut up.

...

SMartinez89

Mar 25, 2010, 2:57 PM

Take that apple

🙂 😁 🤤 😲 😳 🤣 😛 🙄 😉

murmermer

Are you stupid? but Apple has $40 in the bank

http://www.macdailynews.com/index.php/weblog/ comments/apple_shares_hit_new_all_time_intrad ay_closing_highs_100323/

If Apple wanted to outperform Google they would release the iPhone to every Carrie...
(continues)

...

trojandrew

Mar 26, 2010, 12:32 PM

So what you're saying is...

...it's similar to Apple's profit share model with AT&T for iPhone sales?

Actually it's just the Google model straight up, look at it like a big affiliate ad program except instead of revenue generated through links to / through Google ads from your site it's a phones sold through carriers that wind up in end users' hands that then Google search their brains out. The carriers are just big affiliates paid out on ad revenue through the phones they sell.

Nothing evil or shocking at all about this.

Versed

Exactly nothing evil about it. People just like to throw stones, be it android or iphone haters. Just use what the heck you like, and be content.

InnocentEd

Mar 25, 2010, 3:43 PM

So What?

How is this different than any other partnership in any technology business?
You know for a FACT that either AT&T is paying Apple for exclusivity or Apple is paying AT&T not to use anything else or something along those lines.

Google is creating partnerships....

You don't think Microsoft is going to try to do the same things? You don't think Apple is/will continue to have similar practices?

Please

runin2music

InnocentEd, I agree with you completely. There's nothing wrong with paying someone to sell your product...it's called a business investment. If Google weren't worth it, then the carriers wouldn't be selling them, and customers wouldn't be buying the...
(continues)

...

CellKrazy

InnocentEd said:
How is this different than any other partnership in any technology business?
You know for a FACT that either AT&T is paying Apple for exclusivity or Apple is paying AT&T not to use anything else or something along

...
(continues)

...

netboy

Mar 25, 2010, 5:19 PM

i know google is not dumb, but come on!!

how about just lower the price of Nexus one!
so more people are willing to buy it!
yes, i'm talking about buying the phone without a plan!

Versed

netboy said:
how about just lower the price of Nexus one!
so more people are willing to buy it!
yes, i'm talking about buying the phone without a plan!

I paid the full price of the Nexus One, and I do agree with w...
(continues)

...

zzyo

Mar 25, 2010, 2:45 PM

at least

it sped things up a little. android is awesome and it needs to be pushed out as fast as possible

Versed

Still Google is evil, that is for sure, Apple is greedy, that is also for sure.

Then again, I own an Nexus One.

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