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Google Inc (GOOGL) Ready To Cut Your Monthly Cell Phone Bill?

Not many people would believe that they usually spend well over $1,000 a year on mobile phone bills, more than home internet and cable combined. Google Inc (NASDAQ:GOOGL) is looking to address this financial debacle by launching a  Wi-Fi first cell phone service at a much lower price than most of the current phone bills; reports Fox Business, David Asman.

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Google wireless service according to Enderle Group President, Rob Enderle, would translate to consumers saving a lot on phone bills. There are already plans in the market going for as little as $10-$30 a month.

Current plans are based on the idea of voice calls going through traditional wired network that carriers don’t incur any costs on, having already built the infrastructure.

“Google Inc (NASDAQ:GOOGL) flips it around they basically charge you for the data service you push your calls across the data service kind of voice thing called Voice over IP. The end result is you get the same kind of capabilities. Slightly lower quality may be some of those voice calls are actually better, and the result is a much lower bill,” said Mr. Enderle.

Google Inc (NASDAQ:GOOGL) has not yet confirmed the finer details of its wireless service. One thing for sure is that it will not be taking the likes of Verizon Communications Inc. (NYSE:VZ) on, with its cellular network. Instead, the search giant plans to partner with smaller rivals like Sprint Corp (NYSE:S) and T-Mobile Us Inc (NYSE:TMUS) a move that is expected to upset the current prevailing pricing model.

Google Inc (NASDAQ:GOOGL) wireless service is to route user’s calls on available Wi-Fi networks rather than the cellular networks that have been attributed to the higher costs for voice calls. The search giant Fiber high-speed internet network is another piece of technology that is running in a number of cities that would be used to power corresponding Wi-Fi networks to be used for voice calls.

With Google Inc (NASDAQ:GOOGL)’s wireless service coming into play in the coming weeks. It is advisable according to Enderle not to buy a locked phone with a particular plan because plans are about to get even cheaper.

“You will be very wise not to. In fact, there are other companies in the market that provide this services for that kind of money. You basically buy an unlocked phone you pay a lot more for the phone actually a lot more for the phone in some cases. But the end result is you get this massively lower monthly bills and so with savings you should get to the break-even point in a matter of months,” said Mr. Enderle.

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