CNET en EspanolCNET Mobile What’s Google really up to in wireless? Might not be what you think. What’s Google really up to in wireless? Might not be what you think. [commentary] Rumors are flying that Google wants to resell Verizon or Sprint wireless service, but CNET’s Maggie Reardon throws cold water on that theory and comes up with her own idea. Is Google really considering taking on the wireless industry? According to The Information, the company has talked to Verizon and Sprint about leasing wireless capacity to launch a mobile service. Earlier this week, the news Web site cited unnamed sources who claimed Google has had talks with Verizon and Sprint over leasing access to their mobile networks in markets where Google has already deployed its Google Fiber 1Gbps broadband service. So far, Google has launched service in Kansas City. And it's building Google Fiber in Austin, Texas, and Provo, Utah. And it recently announced plans to expand the broadband service to several more cities. Some blogs have speculated, based on these rumors, that Google may be interested in becoming a mobile virtual network operator, or MVNO, that allows Google to buy access to these established wireless networks at wholesale rates and resell the service to customers, thus competing directly against wireless operators. I know what you're thinking. Yes, you're correct. But before you start jumping to conclusions about the type of service Google may be offering, let me start by saying the people in charge of Google's broadband strategy are not dumb. The reports speculating that Google may try to enter the wireless market to compete directly with mobile operators, such as AT&T or Verizon may be overstated. My theory is that Google is exploring its options and is much more likely to develop a strategy that looks more like what its cable rivals are doing today rather than rehashing the cable industry's failed attempts to become traditional wireless resellers. Not surprisingly, neither Google nor either of the wireless carriers would comment on the rumors. Building a wireless business as an MVNO that uses another wireless operators' business is a tough one in which to make money, even for a company like Google. For one, the very fact that you have to rely on another company's wireless network is risky. What's more, even though Google would likely get access to a far more extensive wireless network than it could build itself in a short period of time, the network assets that major wireless carriers offer MVNOs is typically limited. For example, Verizon does not offer access to its 4G LTE network to any of its wireless reseller partners. The only MVNOs that get access to Verizon's LTE network are the ones involved in its LTE Rural America project. This project allows rural operators to use Verizon 700MHz spectrum market to build out LTE infrastructure in parts of the country where Verizon doesn't find it cost effective to build a network. Then those operators become partners with Verizon and their customers can roam onto Verizon and Verizon customers roam onto their networks. Sprint also limits the coverage it's reseller partners can use to only the Sprint territory. It does not include access to any of Sprint's roaming partnres, which reduces the overall footrpint the reseller has access to. Still, Sprint does offer access to its 4G LTE network. And of course, there is the problem of competing with a company whose infrastructure you lease. If the bursting of the telecom bubble in the early 2000s taught the communications industry anything, it's that building a business around someone else's infrastructure just isn't a good idea. What's more, Google has made it clear that it has no interest in selling traditional voice services. While the cable operators and telephone companies it competes against with Google Fiber all offer phone services as part of a "triple play" bundle, Google decided not to include telephone service as part of its offering because it didn't want to have to comply with all the regulatory requirements. My guess is that they would be equally averse to complying with wireless voice service requirements. The last thing to point out here is that selling wireless service doesn't even really make sense for Google since it's unlikely to help the company's fiber broadband business. This was the starkest lesson the cable companies learned during their foray into the cellular market. "When we started down this path eight years ago we believed that if you didn't have a cellular service for the quad play that we'd be at a huge disadvantage," Comcast senior vice president of strategic initiatives, Tom Nagel said in a recent interview discussing Comcast's wireless strategy. "But what we learned was that the 'quad' play wasn't really necessary. Nagle said that the quad play sounds good on paper but the reality is that people buy mobile phone and cable services very differently. "Wireless may be sold as a family plan," he said. "But each person signs up for the service at different times. Cable and broadband are household services. Nearly a decade ago, some of the biggest cable operators around including Comcast, Time Warner Cable and Cox Communications, formed a joint venture with Sprint called Pivot, which was supposed to deliver what everyone was calling the "quad play" of services -- TV, home phone, broadband, and mobile phone service. The cable operators planned to use this joint venture to resell Sprint wireless service and bundle it with their other services. The idea was to create an even bigger package that would help cable operators retain customers. But the joint venture was a miserable failure. Two and half years after it was formed, Pivot was dissolved when Comcast and Time Warner Cable pulled out. In 2008, the cable companies came together again to bankroll another joint wireless deal between Sprint and Clearwire with the expectation that they again would be able to resell wireless service. That was also a flop and the cable companies pulled out of the joint venture, leaving Sprint as the only stakeholder. These same cable operators also paid $2.4 billion for licensed wireless spectrum in a 2006 FCC auction. They later sold this spectrum in 2011 to Verizon for $3.6 billion. Even though the cable operators made a nice little profit from their spectrum sale to Verizon, overall they learned some difficult lessons over the past decade of wireless experimentation. The biggest lesson was that reselling a wireless operator's mobile phone service was unnecessary and difficult. The second lesson was that having a mobile play is important, but not in the manner you'd expect. "We realized that licensed spectrum was not critical," Nagel said. "Yet we still believe that making our products mobile is very important. Our mobile strategy today is taking this awesome high-speed data product and extending it. It's like taking your coax cable with you. Indeed, Comcast, Time Warner, Cablevision, Cox and Bright House Networks have pooled their assets together to build CableWiFi, the largest Wi-Fi network in the country. The network, which uses unlicensed wireless spectrum, consists of 200,000 indoor and outdoor hotspots. Today, the network is mostly concentrated on the east and west coasts as well as in big cities in the midwest. But the network is growing quickly. And with a recent FCC vote to free up additional unlicensed spectrum in the 5GHz band, these cable operators say they will be able to do even more with their Wi-Fi network. So what does all of this mean for Google and it's potential plans to launch a wireless service? My guess is that Google is likely looking at developing a mobile strategy that fits more along the lines of what the cable operators are doing rather than becoming a mobile carrier that directly competes with the wireless giants. This makes sense for a few reasons. First, with Google Fiber, Google already has the necessary high-capacity backhaul in the ground that is necessary to support an extensive mobile network that acts as an extension of its Google Fiber service. And let's not forget that Google also has experience delivering community based Wi-Fi. The company launched a citywide Wi-Fi project in its hometown of Mountain View, Calif., and it has been operating a free community Wi-Fi network in New York City in the neighborhood surrounding its office in Manhattan. If Google is indeed talking to Verizon and Sprint about leasing licensed wireless network capacity, my guess is that the company only hopes to use these networks to act as back-up in areas where Wi-Fi may not be able to reach. This type of service could end up looking a lot like the service that some interesting new MVNOs, such as Republic Wireless and Ting, are offering. These companies are offering alternative and very cheap wireless phone and mobile data service. Republic has voice and data plans starting as low as $10 a month. The way the company is able to keep prices so low is that they use Wi-Fi as the main form of network connection and then they license Sprint's network capacity to handle voice calls and data session in areas where Wi-Fi is not available. The idea is that customers will spend a majority of their time on the free Wi-Fi network and only a fraction of their time on Sprint's network, which Republic pays for by the megabyte. While the cable industry hasn't yet partnered with a company like Republic or Ting, they are intrigued by their business model and the use of Wi-Fi to provide a low cost alternative wireless service. "We know of Republic Wireless," Nagel said during our discussion about Comcast's wireless ambitions. "We've talked to them. There are a number of players in that space. And I think it's interesting. It's all about learning and exploring what's possible with Wi-Fi. As for partnering with a mobile carrier --yet again-- to further their mobile broadband strategy, Nagel admitted that Comcast has considered it. "We look at 4G LTE all the time and evaluate how it might be used," he said. "It's not front and center for us right now. We definitely aren't sitting around saying, 'Boy I wish we had an MVNO.' But you never know what will happen in the future. The one thing we do know is that Wi-Fi will be the foundation of whatever we do in mobile. Maybe just maybe, that's what Google is thinking, too. Tags: Mobile About the author Marguerite Reardon twittergoogleplusMarguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie. Monument Valley: An interactive M.C. 4. Roku's new Streaming Stick takes on Chromecast: $50, HDMI-compatible, 1,200 apps (hands-on) $49. 3. 4. This neat little cleaner goes for the high score $353. 3. 2014 Audi A7 3. The best tech car $66,900. 33. Amazon is ready to battle Apple, Roku, and Google to earn a spot in your living room. Check it out © CBS Interactive Inc. / All rights reserved. Follow CNET via... 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