On Innovation

When Larry Kudlow asked Mayor Giuliani how he was going to get health insurance to the uninsured, Hizzoner gave my favorite political answer of all time: "How did we make cell phones cheap?"

That may be a non-sequitor to the collectivists, but I'm sure the ThreeSources faithful get it. Free Market competition and innovation brought what was once the archetypal luxury item to commodity pricing. We don't ask how we're going to get people cell phones -- every 12 year old has one or two.

That spirit of innovation may take a big step up. The Wall Street Journal (paid link) reports on a Google push into the wireless marketplace.

Within the next two weeks, Google is expected to announce advanced software and services that would allow handset makers to bring Google-powered phones to market by the middle of next year, people familiar with the situation say. In recent months Google has approached several U.S. and foreign handset manufacturers about the idea of building phones tailored to Google software, with Taiwan's HTC Corp. and South Korea's LG Electronics Inc. mentioned in the industry as potential contenders. Google is also seeking partnerships with wireless operators. In the U.S., it has the most traction with Deutsche Telekom AG's T-Mobile USA, while in Europe it is pursuing relationships with France Télécom's Orange SA and Hutchison Whampoa Ltd.'s 3 U.K., people familiar with the matter say. A Google spokeswoman declined to comment.

The Google-powered phones are expected to wrap together several Google applications -- among them, its search engine, Google Maps, YouTube and Gmail email -- that have already made their way onto some mobile devices. The most radical element of the plan, though, is Google's push to make the phones' software "open" right down to the operating system, the layer that controls applications and interacts with the hardware. That means independent software developers would get access to the tools they need to build additional phone features.

The details are a bit murky, but the world's largest corporation will certainly influence any area it finds strategic. I was selling technology to search engine purveyors a few years ago and they unanimously said that their investments would be in the mobile space.

I'm thinking that when Google joins Wal*Mart in focusing on profit potential in health care, the problems we stew about will all be solved.

UPDATE: A WSJ email alert alerts:

After opposing Google Inc.'s moves to dramatically reshape the wireless industry, Verizon Wireless is now in serious discussions with the Internet company over carrying phones tailored to a new Google operating system, a person familiar with the discussions said.

Looks like AT&T-Apple vs. Verizon-Google. I guess my beloved T-Mobile will get stuck with Microsoft®...

Google Posted by jk at October 30, 2007 3:15 PM