Gphone: Phantom marketing at its best

TECH SPEAK

Google has not uttered a single word on this issue. However, even as Apple slashed the price of its iphone by $200, the buzz around the Google phone or Gphone, as it is better known, is getting stronger.

If it is indeed a phone, it will essentially envisage a paradigm shift for the search giant "" from software to hardware. But if it's a mobile operating system (OS) or an Internet browser, as some speculate, it would still involve a whole new business model.

The phone, it is rumoured, will support Wi-Fi, 3G, voice over Internet protocol (VOIP), MP3 and global positioning system (GPS), besides sporting a good camera and video lens, and finally a big screen.

The OS (the buzz gained ground since Google acquired a startup named Android), on the other hand, is expected to enable Google launch low-priced smartphones.

Do the write-ups border on the ridiculous or is there some foundation for the buzz? A post on searchengineland.com has compiled the rumours that appeared since 2004 as a timeline which the author promises to continue updating.

For instance, in December 2004, Google Vice-President Urs Hoelzle spoke of mobile growth being stifled because "every device is different", prompting rumours that Google would look at making its own phone.

In January 2006, it was rumoured that Google got a CDMA patent to make CDMA data transfers happen at a faster speed. And in November 2006, Google CEO Eric Schmidt told Reuters that "Your mobile phone should be free" with ads subsidising the cost.

Then there was the buzz of Google making the phone with O2, partnering with LG, buying radio spectrum to provide new services, and finally getting the phone off the ground with HTC.

Even as this was happening, the buzz revolved around Google focusing on applications for various phone systems as well as its own mobile phone operating system, while other rumours reiterated that the Gphone will use Linux and GPS.

Google has also filed a patent for a mobile payment processing system, GPay, again fuelling the rumours. And, according to analysts, Google used YouTube (which they acquired last year for $1.6 billion) for trials of an ad-revenue supported mobile service.

This only added sparks to the Gphone buzz. Around 99 per cent of Google's revenue came from advertising in financial year 2006-07. The remaining 1 per cent came from licensing and other revenues. The wireless arena is an obvious way to go for Google, given that it lags Yahoo and Microsoft in this space.

However, there are quite a few unanswered questions. First, the Gphone trademark is not owned by Google, and neither is the URL (gphone.com). Second, Google CEO Eric Schmidt is on the Apple board. And Google has been collaborating with Apple in providing applications for the iphone. Why would it harm Apple's interests?

The answers should unfold in the coming weeks. Meanwhile, the clear winner is Google, having managed to keep the mystery alive for almost 3 years and get free online and offline publicity.

It can be called phantom marketing "" the ability to make the word-of-mouth marketing work for it without having a product. Considering that most journalists and bloggers have been writing reams about it, the whole issue has achieved more credibility. One can only wait and watch.