Android – a threat to the telcos?

So Google has released the android sdk – and yes, it looks nice in their demo video. But it’s only a video… It seems to be a good strategy to me not to build their own gPhone – Apple has build a beautiful phone with the iPhone, but it’s not a good phone regarding voice quality, basic technical features like 3G etc. What Google tried to build with all of their web-apps is the web OS – but control over hardware still was at the browser and the underlying OS. So now it’s their first „real“ OS, taking control over hard ware features like initiating phone calls, evoking emails and so on. The goal of that strategy is in the huge developer community maybe starting to build cool mobile apps – but why haven’t they with Symbian? There are already cool apps out there, so why another OS? Of course it makes sense for google, but as long as telcos route the traffic, the market will remain a walled garden. Telcos charge you for „offnet“ traffic (offnet = www, onnet = portals of the telcos) and will in the future – the only remaining chance for growth for telcos for the next 5 years is in data traffic – and here might be the point: when the demand for offnet features grows, and it might because of cool apps build on OS like android, it’s a winning situation for the telcos on the short and mid term – but it won’t be over the long term. Telcos will have to find new ways of monetize their service – infrastructure on its own will not last over the next ten years. Telcos have carefully recognized this development and will react, like building music- and video stores selling products there or building alliances and sell bundled products (get a fridge, 100 songs and a mobile for 100$, electricity included for the next 24 month). But it’s going to be a tough fight for every single customer. With android google has launched a platform they can monetize in the long term – and that’s why you still should buy GOOG 😉