Google 'Highly Likely' to Seek Carrier Revenue-Sharing Deals

SAN FRANCISCO -(Dow Jones)- Google Chief Executive Eric Schmidt said Monday it was "highly likely" the Internet giant would seek revenue-sharing agreements with mobile phone carriers that provide its services and products on their networks.

Schmidt said revenue-sharing agreements between Google and carriers would produce a better mobile "ecosystem" because "everybody is in alignment."

His comments came in a conference call with reporters after the search and advertising company announced an alliance with 33 handset makers, wireless carriers and other technology companies to create low-cost mobile phones based on "open" technology standards.

The centerpiece of the initiative is an open-standards software platform - dubbed Android - that includes an operating system, a user interface and applications for mobile phones.

Schmidt said the initiative was "more ambitious" than a single "Google Phone" that media reports suggested was soon to be announced. Phones build around the Android platform were not expected to hit the market until the second half of 2008.

Schmidt said Android was an open platform that would be available to any developer to use and modify under the "most liberal open source license" ever.

Google's initiative is a challenge to the manner in which cellphone carriers control the services its customers can use, including accessing the Internet. The company expects its open standard will make cellphones more like the Internet, which users can access through practically any computer and service provider.

"The goal for Google on the mobile platform is to increase the footprint of Google applications, products and services running on mobile phones without any restrictions as long as end users want to use them," said Sandeep Aggarwal, analyst at Oppenheimer and Co.

-By Scott Morrison, Dow Jones Newswires, 415-765-6118; scott.morrison@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 5th November 2007