No Surprise: Google Offers Carriers Rev Sharing


The concept that Google offers revenue sharing to carriers who have Google Apps pre-installed on their Android Phones has recently been brought to light by and created quite the fuss over the interwebz. Why? I’m not quite sure.

For some reason the move is being explained as if its some sort of sneaky, undermining system. You could make that point… but it would be absolutely ludicrous. Android is a FREE and OPEN system that anyone can use on their devices and we’ve seen PLENTY of folks build hardware that don’t even have a TRACE of Google.

  • Want to include Android Market? No problem, we’ll even share revenue with you
  • Want to include Google Apps? We’d like that very much, and we’ll even share revenue with you
  • Want to work with another partner, like Yahoo, who will outbid us and have THEIR services pre-packaged on your devices for a set fee or a revenue sharing system? Be our guest – we’ll keep working on the Operating System itself so your Yahooified phone is the best it can be

androidpayGoogle was negotiating default search placement in mobile phones WELL before Android was on the table. They do it with the iPhone. They’ve done it with feature phones. Heck, they’ve done it with your desktop browser known as Mozilla Firefox.

In fact, I’m looking at this from a completely different angle than most people: if Google has to “bid” for default placement on phones with THEIR OWN operating system, then obviously they’re playing the “Open” game fair. Much more fair than Palm who claim they want to open things up but don’t allow any other manufacturers to touch their “secret sauce”.

So just a fair warning when you’re reading all these reports from across the web – don’t be surprised that Google is offering carriers money to include Google Apps on their Android Phones. Not only is this pretty much standard operating procedure, but it shows that Android is probably a lot more transparent than its critics give it credit for.

Rob Jackson
I'm an Android and Tech lover, but first and foremost I consider myself a creative thinker and entrepreneurial spirit with a passion for ideas of all sizes. I'm a sports lover who cheers for the Orange (College), Ravens (NFL), (Orioles), and Yankees (long story). I live in Baltimore and wear it on my sleeve, with an Under Armour logo. I also love traveling... where do you want to go?

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  1. I knew there had to be some reason for all the hype

  2. This isn’t new for anyone who listens to This Week in Google Podcast.

    Jeff Jarvis Has been talking about the concept of a “Less than Free” model for google and Android for some time.

    I think this shows the distinct advantages of Google’s business model as an advertising company as opposed to a software or hardware company (Microsoft and Apple respectively). It’s hard for Microsoft to justify paying device OEMs to use their services on a device that they just charged the same OEMs for that devices software. And Apple uses it’s services to sell more hardware so it can’t help but closely bundle them. Only Google, who makes more money the more people use their services, can then share the revenue back with the OEMs and carriers.

  3. Considering I paid over $500 for my Nexus 1 it would be nice if they’d share the revenue with me instead.

  4. Nice write up. I still have my occasional thoughts that “Google Is Evil” but to be honest reading this has helped me a little … lol.

  5. @Rob
    Not new news. Was publicized about 6 months ago if I recall. Just some Apple/Microsoft games in action which many in the blog community are pleased to parrott.

    By the way, do you place any credence in this link talking about Nexus One outselling iPhone in Feb 2010?


  6. Good post +1

  7. Rob, brother you make a hell of a good point. It seems that people in th interwebz cant wait to hurt companies nowadays… and write articles just to do it.

  8. Wait a minute!, Rob, this also explains the nature of the Nexus One. Since Google is not giving the carriers much work, it is cheaper for them to just make the phone and sell it themselves than pay the carriers to have the phones use their services. Nexus one is the phone that has the most google services preinstalled, specially Google voice which kinda goes against the interests of a carrier

  9. I don’t get why people automatically think that a company is evil when they try to make money in one way or another. Or grow their business in some way. In that same thought those who work to make money are obviously doing something wrong, because they’re attached to one of those greedy businesses trying to grow their company and make more money so they can hire more people to work for them. I like google, I like that it’s getting bigger, I like that they’re innovating on both business and tech fronts. Until they come to my home and force me into slave labor or take my first born child I don’t care how much money they make or how big they’ve become. They’re doing something right.

  10. They should force them to use Google Apps as its their OS and its the least they should have, their os is amazing.

  11. You are leaving out a central point: Gizmodo hates Google/Android. I honestly feel like it causes physical pain to any Giz contributor to write positively about Android. Naturally this is news to them, vis a vis Fox portrays what is opinion & what is news.

  12. And this explains why optus in australia is now offering paid apps to people using android!

  13. And this doesnt explain why there is no Android Marketplace at all (even the free one) in most place in Asia, like my own country.

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