Google in talks with mobile operators for cheap overseas calls

Google is in talks towards a deal with Hutchison Whampoa, the owner of the mobile operator Three, that will allow Americans to use their phones abroad at no extra cost, industry sources have disclosed. The two giants are discussing a wholesale access agreement that would become an important part of Google’s planned attempt to shake-up the US mobile market with its own network. It is understood that Google aims to create a global network that will cost the same to use for calls, texts and data no matter where a customer is located. By linking up with Hutchison, it could gain wholesale access to mobile service in the UK, Ireland, Italy and several more countries where the Hong Kong conglomerate owns mobile networks.

Sources said Hutchison was a natural partner for Google in the plan, because it has also sought to eliminate roaming charges for Three customers. Google announced its plans to launch a mobile network in March. It will not build mobile masts but rely on wholesale deals to use existing infrastructure both at home and abroad. The company described it as a “small scale” project. Industry analysts expect Google to use its network to put pressure on the pricing of America’s biggest mobile operators, AT&T and Verizon, who enjoy higher profit margins than their European counterparts. It could also use the project to encourage operators to invest in new technology to improve mobile coverage via Wi-Fi networks.