How To Win Wireless: Google Advertising Rev-Share Deals With Carriers

With reports of Google shipping 60,000 phones per month loaded with the Android OS, MocoNews has a post stating that Google is using it’s advertising might by encouraging carriers to push Android devices. One thing that Google has which no one else in the wireless industry can offer: advertising revenue-sharing deals.

According to multiple sources who are familiar with the deals. In some cases, sources said, Google is also cutting deals with the handset makers. The revenue-sharing agreements only occur when the handsets come with Google applications, like search, maps and gmail, since that is not a requirement of Android. Google declined to comment, and said terms of its agreements with partners are confidential. A number of carrier and handset makers that I spoke with about this declined to comment.

Google is using it’s war chest of advertising to entice carriers with additional income. A move that has probably prompted Apple to sue HTC and with the bitter taste still fresh in Apple’s mouth of losing out on AdMob to Google. What does this mean for the rest of the handset makers? Trouble. When an entity as powerful and savvy as Google can combine a fantastic operating system, well built handsets, application revenue sharing with carriers, a more open application environment and revenue dollars to carriers, the odds are greatly stacked that Google could soon see 100,000+ handsets per month, sold in the next three quarters of this year.

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