Mountain View (CA) - Inventors at Google have developed a novel concept to end the war of cell phone and wireless contracts. Their idea was awarded a patent yesterday and relates to per use bidding. Their patent is broad enough that it could apply to all wireless communications, including GSM, 3G, WiFi, WiMAX and the so-called "white space spectrum" which will be freed up once analog TV broadcasts are replaced with digital ones in 2009. "Bid before you use" is the model Google has patented. But will it work?


A little computation before you call

A type of instant response system would be created between users and service providers. A potential user would indicate in some way the type of service required before they use it. For cell phones it would basically be just dialing the number and pressing Send. That information would be sufficient to let the bidding companies know what services are required, meaning "a call between here and Pittsburgh" which might go through seven different phone networks.

All available service providers would immediately receive the request, compute their rates based on use, trends, whatever other factors they add in, and then send back a response with their best rates. The user would see a list of rates on-screen from various providers and choose the one they wanted. The service would begin immediately and an account associated with the wireless device would automatically be debited.

Basically, instead of typing in a number and pressing send, a caller would type a number, press Send, wait for the response, and then choose the route they wanted to go. But, it doesn't have to be that complex.


No immediate changes required

Using this new method wouldn't require any changes. It would still be possible to continue using a wireless devices pretty much as is done today. In such a case, a user would setup some automatic selection critera which would engage an automatic selection algorithm. This may be something simple like the "I'm feeling lucky" button on Google's search page, which automatically goes to the first hit found in a Google search. In the case of the cell phone it would always go with the cheapest rate.

Other programmable abilities like "When in San Francisco always use AT&T," or "If Sprint network is available and only up to 15% higher than cheapest rate, go with Sprint," and a whole host of real, user-customizable options. In these cases the algorithm could automatically choose providers based on desired behavior.


A big change in thinking

Still, there is this huge inertial mindset in place regarding the use of wireless devices. Users like to know that when they turn something on it will work, and do so as expected. Also, they don't like to think a lot. It might take an hour to figure out how to use all of an iPhone's features. But once it's learned the idea of having to do something differently isn't readily appealing to most users.

Switching to this type of bidding system will produce a new type of network. And unless the user has setup a rule like "Regardless of rates, always use Sprint, AT&T or Verizon, and in that order," it is one that will be completely variable in nature. Sometimes service will be as the user expected. Other times it may be something less. And new issues are raised like, "should I pay for faulty service or misleading abilities," such as a company claiming to provide service from some location, but being ultimately unable to do so reliably?

When is it the fault of the consumer for choosing A over B, and when is it the fault of the provider?


Laws, laws and more laws

It seems very clear that such an idea, while potentially freeing wireless users in many ways, would also require a host of new laws relating to wireless use and service providing. Without such laws, the reliability enjoyed by users on networks today could be severly compromised. Since average Joe and Jane User may not truly understand the ramifications of placing their call through the service that costs 1.2 cents less per minute than what would come from a more reliable network, it is theoretically possible that their lives could be at stake.

Do I choose "Joe's Cell Phone Network" when in Spitfire, Arizona for my 911 call just because they're half the price of AT&T? These are all real issues that would have to be sorted out. And in such a model, consumers would have to be protected.


Conclusion

Ideas like this are really great to read about and even see being proposed by a company like Google. A market economy in the cell phone industry would definitely be a desirable alternative. It's one which ultimately places the reliability of the network and its rate guides at the behest of the public. When there are no long term commitments or contracts it's up to us who we choose.  It's in a company's best interests to provide the best service they can for the cheapest rates possible.

"Power to the people."

That's what this idea from Google is all about. And now for the big question:  Will it ever see the light of day?

So who do you blame call quality problems on?

Sep 26, 2008 08:25     

At least now we can remember the "Only as good as the network it's on" ads and grit our teeth for being locked into , this future scenario leaves so much room for finger pointing you might never complete a call! Besides, carriers will just make charges nonlinear ("$0.42 to connect, $0.015/minute for the first 8 minutes, $0.012/minute thereafter" or some such), and we'll never be able to parse them. Great idea, but I don't see it happening.

wpns report abuse vote down vote up Votes: +3

Best case scenario...

Sep 26, 2008 08:42     

Best case I can see arising out of this idea is lower contract prices from providers trying to keep people from trying out this alternative. Which would be a pretty good scenario for those of us not wanting to chance our phone calls on random providers. Side note: In your conclusion you question whether or not the idea will see the light of day, yet in your title you state it will "end wireless contracts forever". Just want to point out my frustrations with how you guys title your articles just to catch those in disbelief when even you don't believe in it yourselves.

Nick B. report abuse vote down vote up Votes: +3

Sound like ENRON of communication

Sep 26, 2008 09:28     

sound like ENRON ... Regulators please!
Francois report abuse vote down vote up Votes: -5

might be a replacement for current pay-as-you-go plans

Sep 26, 2008 09:33     

This could replace pay-as-you-go plans, but I doubt it can compare to the cost savings from contracting. Per minute PAYGO prices are so much higher than per minute contract prices that for many (most?) people, PAYGO doesn't make sense. For this system to replace contracts, it would have to drive down PAYGO prices considerably - which isn't going to happen. Contracts represent guaranteed business, which mitigates risk in cost calculations. PAYGO, on the other hand, has a high risk component, and so prices are higher to compensate. Opening up PAYGO to competitive bidding on a per-call basis won't change much.

Andrew report abuse vote down vote up Votes: +1

Not realistic, but I like it.

Sep 26, 2008 09:50     

You hit the nail on the head when you said that users don't like to think too much. But I myself think that most people need to take the time to be more educated in every aspect of their lives, especially in the U.S. With that said, it is beneficial to the consumer to realize in what ways the providers are ripping them off.
Aaron report abuse vote down vote up Votes: +0

Bored at work

Sep 26, 2008 09:51     

The real question I have about this plan, is how will data be handled. There is no mention of text messaging or internet usage. Just my 2 cents....
GregWalterscheid report abuse vote down vote up Votes: +0

Really nice for those that travel

Sep 26, 2008 10:14     

I spend a lot of time in 2 places. Home where Verizon is the King and then I visit and go to other places where at&t or sprint or tmobile can be the dominant brand. For those times it would be nice to see a plan like this.
sxo report abuse vote down vote up Votes: +0

idk...

Sep 26, 2008 11:18     

bein techy myself i kinda like the idea because he's right, after the initial setup calls would basically go as usual. However, you'd never know what your monthly bill would be so it could be harder to budget for. Also as someone else mentioned, going across networks like that; who do you call if you run into a problem? Hopefully it would keep a log of what service was used on what call and track drops and maybe even have a button you can tap to log poor call quality but that could start to get complicated. In the end, it would probably spell some nice competition between the carriers; all bidding for our service but i don't think it will ever take off because of the inherent complexity of it. They would simply have a hard time selling it to the general public imo.

wsp_epsilon report abuse vote down vote up Votes: +0

Apple has this patents as well?

Sep 26, 2008 12:11     

Apple has a similar patents as well? I remember reading something similar on Appleinsider....
Ed report abuse vote down vote up Votes: -1

An important correction: THIS IS NOT A PATENT.

Sep 26, 2008 12:59     

This is a patent application, which has not yet matured into a patent. The USPTO publishes most patent applications 18 months after their filing (unless the applicant requests secrecy). This application may -- or may not -- ever become a patent with legal backing. At this point, this idea is only "Patent Pending". cheers! ;)
Jesse report abuse vote down vote up Votes: +0

Hey, Rick!

Sep 26, 2008 13:38     

Are you the same Rick C. Hodgin that ran a website in the early days of the INTERNET that had tutorials on how to use AMD's 3DNow! instruction set on the AMD K6-2 processor? Best regards, Daniel
Daniel report abuse vote down vote up Votes: -1

this idea sucks for me

Sep 26, 2008 14:02     

I have an employee rate with sprint because of the company I work for. I only pay $20 for 2000 anytime, unlimited night/weekend and unlimited text/internet. I added unlimited pics for $5 more, but I think if this plan were to happen, I would be paying a lot more.
Dustin report abuse vote down vote up Votes: +0

It will happen b/c they want it to

Sep 26, 2008 15:23     

In my opinion this is entirely possible and likely to happen. Why? Here's what seems to be in progress: -Mobile devices have become much more capable -Mobile standardization is now possible via Android -WiMAX, broadband wireless, will work with Android -WiMAX availability is being pushed for by Google -Google backs Clearwire, 1st of new breed carriers It seems to me that the current telephone system is on its way out compliments of new technology and Google's apparent vision and interest to change (organize) the mobile space. Google has formed the OHA (Open Handset Alliance) partnering with carriers like Sprint and T-Mobile gaining buy-in and knowledge from part of the existing carrier industry while moving ahead with the creation of a new medium that could/will displace the old phone (and broadband?) systems. Google's Android facilitates innovative use of mobile devices, undoubtedly once unshackled from current phone carriers, scenarios like the one proposed in their patent application will be quite viable and likely to be implemented, in my opinion.

Michael Lee report abuse vote down vote up Votes: +0

it's a miracle google a billion dollar company that sells nothing

Sep 26, 2008 16:18     

This will be the biggest flop ever, who comes up with these idea's why don't they do real work instead of creating a scheme to make money. Maybe the banks will buy this idea they seem to be doing pretty good now, with 50% interest on credit cards.
RickytheRick report abuse vote down vote up Votes: +0

Seems like deregulation

Sep 26, 2008 18:16     

This scheme might work in an ideal world, but the one we live in is full of corruption. Consumers would end up paying more and no one would take the blame. And imagine what an itemized bill would look like? I can't even figure out my electric bill. My cell phone bill is already fifty pages. Itemized with all the carriers would probably look like the Manhattan phone book.
J. Doe report abuse vote down vote up Votes: +0

Deregulation?!

Sep 27, 2008 03:17     

Not quite, and as for the Manhattan phone book bill, this is where electronic billing comes into play, doing something like 'E-Surance' (mispelled?) does, and could ultimately save trees and other resources.
Onoitsu2 report abuse vote down vote up Votes: +0