STAMFORD, USA: According to Gartner, Inc. Google's influence and market power with key telecommunications industry stakeholders is having a significant impact on the industry. 

Alex Winogradoff, research vice president, Gartner, said: "The communications industry 'ecosystem' — encompassing regulators, Internet service providers, advertising, and media customers and service providers — finds itself in Google's crosshairs, not because Google necessarily wants to compete with telecom service providers or content developers, but because it finds their business process to be an impediment to innovation and change."

Google will continue to be a market disruptor and disintermediator, especially in the communications market. Carriers should selectively partner with Google rather than trying to compete, especially in areas where they don't have differentiated and core assets. However, carriers should also find common ground with Google (for example, on network neutrality) and, if necessary, look for creative ways to oppose Google on issues critical to their survival. 

Gartner said that coming late to the operating-system and mobile markets has not been a problem for Google and that its Android and open handset alliance (OHA) activities have already had a profound effect on the mobile industry. In addition to disrupting the traditional telecom ecosystem, Google's actions are diluting the market potential and the service providers' ability to profitably monetise their investments in new markets (such as entertainment and software as a service (SaaS) applications).

Gartner has highlighted six critical actions by Google that have already had, or will have, the greatest impact on the telecom industry. These include:

700MHz Auctions — Google pressured the Federal Communications Commission (FCC) to set aside the "C" Block (22MHz to 11MHz in the uplink and 11MHz in the downlink within the US 700MHz spectrum auctions) as an open-access spectrum. All winning "C" Block bidders would be required to provide open access to applications (which cannot be blocked) and devices (which cannot be locked).

Google's primary motivation was to encourage the development of open broadband network platforms to ensure they will be able to deliver bandwidth-intense over-the-air services and applications.

Formation of OHA and the Android Open Mobile-Device Platform — On November 5 2007, several technology and wireless companies jointly announced the formation of the OHA and the development of Android, a new software platform for mobile devices that includes an operating system (OS), middleware and key applications based on the Linux OS and open-source principles.