Google Shows Off Ad-Supported Cell Phone 290
taoman1 writes "Today Google showed off a ad-supported cellphone that the company plans to offer for free to interested parties. The product could reach the marketplace within a year, and will offer Google search, email, and a web browser. 'The move would echo another recent product launched by a phone industry outsider, Apple Inc.'s iPhone. But Google's product would draw its revenue from a sharply different source, relying on commercial advertising dollars instead of the sticker price of at least US$499 for an iPhone and $60 per month for the AT&T Inc. service plan. Negotiating the fairest way to split those advertising revenues with service providers could be a big hurdle for Google, one analyst said. Another problem is the potential that consumers could be scared off by the prospect of listening to advertisements before being able to make phone calls, said Jeff Kagan, a wireless and telecommunications industry analyst in Atlanta.'"
Pictures? (Score:4, Insightful)
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listen to ads? (Score:5, Interesting)
Re:listen to ads? (Score:5, Interesting)
Re:listen to ads? (Score:5, Interesting)
Agreed! Gotta love this quote from the article:
""The average adult who can afford a cell phone is not going to want to listen to ads. So this is mainly for teenagers, twenty-somethings, high schoolers or people who can't afford a phone," "
Well then just add me to the list. By the time they add taxes, the cheapest text messaging plan and insurance I'm paying nearly $100 a month for a regular, "cheap" cellphone plan. Add me to the list of people who "can't afford a phone" because it's killing me. I would love to listen to a 30 second ad before making a call.
There was a 1-800 service I used many years ago called phonehog [phonehog.com] that provided a calling card for use at payphones if you listened to ads. For every 30 second ad I listened to I think I got a 3 minute call. Worked very well and I loved the service, but when payphones started disappearing and cellphone plans got cheaper I stopped using the service.
Google's free phone will kill the prepaid market. Who would pay $50 for 400 minutes [paygmobile.com] when they can get the calls for free? I think I would like an option though, maybe if I press # and the number then deduct the minutes from prepaid minutes but if not then I'll listen to ads.
What about incoming calls? Some companies, like Sprint [sprintpcs.com] and US Cellular [getusc.com] offer free incoming already with select plans. I suppose Google would have to implement something similar, they can't delay an incoming call so you can listen to some ads.
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Sure they can. The person calling you would love to listen to an advertisement.
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This kind of reminds me of what people describe early cable TV as being like - you paid a fee so there were no ads. Then, after a while, you still paid, but you also got ads. I don't want to see the reverse happening here - first free phone with ads, then paid phone with ads. Still, maybe competition can keep that possibility away.
Re:listen to ads? (Score:5, Insightful)
GM, Ford, Honda and others shouldn't be able to sell cars because they could be used to kill someone.
KFC, McDonald's, Wendy's, Taco Bell,etc shouldn't be able to sell fast food because it could kill people.
It's the responsibility of the consumer to understand the consequences of what they do, as well as far any laws put into effect by their state. Listening to an ad or listening to their friend, they aren't paying as much attention on the road...
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I don't think I would want to have a phone with ads, but you can also look at it this way: My husband and I spend about two hours of our combined income a month on our cel phones. So we would have to place 120 calls a month to waste as much time listening to the ads as we do working to pay our cel phone bill. Yes, we probably do make that many calls a month between the two of us, but the
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Is your attention more captivated by an advertisement than it is while you are talking on the phone?
Ouch, you must know some very boring people...
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Phone: brrrring....brrring...brrring
Recorded Ad: "Hello"
Caller: "911! I cut off my finger!!!"
Recorded Ad: "How are you!?"
Caller: "I cut off my farking finger!!!! OMG!"
Recorded Ad: Great!
Caller: "WTF?"br Recorded Ad: "We have the solution just for you. Come on down to Bob's Burgers, Suds and Tractor repair. Remember, our motto is, "if yins tractor costs more dan yours double-wide, well, Bob's is da place".
Re:listen to ads? (Score:5, Insightful)
Re:listen to ads? (Score:5, Interesting)
Re:listen to ads? (Score:5, Funny)
Re:listen to ads? (Score:5, Interesting)
I'd likely get one, so long as that single criteria was met.
-nB
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Apply directly to the nearest insane asylum (Score:5, Funny)
(Taps number in).
(Pause).
"Head on! Apply directly to the forehead!"
"Head on! Apply directly to the forehead!"
"Head on! Apply directly to the forehead!"
"Head on! Apply directly to the forehead!"
"Head on! Apply directly to the forehead!"
(Two minutes later)
"Head on! Apply directly to the forehead!"
"Head on! Apply direc.... Hello?"
"If you ever take that long to reply to your phone again, I swear I will kill you."
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The article does say that it "plans to offer consumers free subscriptions by bundling advertisements with its search engine, e-mail and Web browser software applications"...doesn't say anything about voice ads...except later in TFA, there's a quote from somebody echoing your sentime
Re:listen to ads? (Score:5, Insightful)
Google has a chance to pioneer "effective" advertising, of the type that is extremely context sensual - enough so that it wouldn't arguably be a nuisance to most people. Try this: Go to google and search for "japan". Then search for "vacation". Boom - it puts up small ads about vacations to japan. Convenient? Yes. Obtrusive? Hardly. Innovative? Absolutely. Relevant? Likely.
There are a hundred things, I, as a consumer, would love to see ads on *right now*, but not the old school ads - the new kind. The kind that advertise there's a new chinese restaraurant with 5 star ratings 1.4 miles from my current location. Or the kind that let me know there's a new used game store 3 miles from me that pays more than gamestop for trade ins and sells them for less. Or the kind that say there's a new book at amazon with 5 star ratings on PHP OO when I'm bitching about PHP's OO in IM. There are zillions of these kinds of examples, and if google pioneers it, I will gladly welcome the demise of the doubleclick assault.
Re:listen to ads? (Score:5, Funny)
1. Bail Bondsman
2. Liquor Stores
3. Liquor
4. Beer
5. Prostitution
6. Check Cashing Stores
The list could go on and on. Where there is a consumer, any type of consumer, there is an advertiser just waiting to get their attention.
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It's interesting that you put prostitution on that list. While the other negative things that you (perhaps a little one-sidedly) attribute to poor people are arguably accurate, customers of prostitutes are very predominantly wealthy or middle class. Not all the vices and ills of society can be associated with the poor
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I dunno whether you were trying to be funny (mocking some people's view of poverty), and the mods just went awry, or if you're being serious...
If it's the first option, feel free to skip this post altogether
There are plenty of people, I'm sure, who are poor because they have bad decision making skills, and so they also drink too much, or get caught doing illegal crap, or cash their checks at check cashing stores.
There are also plenty of people, probably many more than the prior set,
Re:listen to ads? (Score:5, Interesting)
Imagine if you had lived your whole life surrounded by people working at jobs that barely made ends meet. Now imagine how you would:
a) Fit your head around the notion that you could get a job that paid well, having no direct experience with people with such a job.
b) Obtain the skills to get that job.
c) Recover, with no support network, from the inevitable bad decisions or bad luck that befall everyone.
d) Develop all of the skills and habits to take advantage of financial success, having not been raised with them.
If your parents worked professional jobs, ever bought you a car or bailed you out of some financial problem, or paid for your college, you have NO CONCEPT of why the poor are "the poor".
Part of the problem is similar to (although much less severe than) trying to understand how people could do the stupid things they did hundreds of years ago. You live in a different culture, that has given you tools to become successful and build on that success. What's more, the culture has given you confidence in those tools that just hearing about them can't convey.
While I admit that I don't have any answers to the problem, I don't think that it's simply a matter of not knowing how, not having the opportunity, not having skills, or not having models of success. If that were the case, how would one explain the success of so many of the illegal immigrants that thrive in my area?
They face hardships that the native poor can't even begin to fathom. They come from the poorest parts of Mexico and Guatemala, which make US housing projects seem like palaces. Most can't speak English, are poorly educated and are relatively unskilled. Being illegals, they have a tenuous (at best) support networks, are frequently victims of crime that they can't report, as well as face racism and general antipathy. Yet they come here, work hard, save their money and move up the social ladder.
The place that I live in is a semi-rural area, with lots of mobile homes and ramshackle houses, high unemployment, and little in the way of industry or opportunity.
And for the record, my parents never worked professional jobs, bought me a car, bailed me out, or paid for my college. We moved to this country when I was seven with nothing. My single mother, my brother and I lived in a nasty, one-room basement apartment for three years until she saved the enough money (cleaning rich people's houses) to buy a small house. She continued the cycle of working and saving her money, and in another few years, we moved to a nicer house.
Instead of having an allowance, my brother and I walked or rode our bicycles to nicer neighborhoods so we could cut lawns, shovel sidewalks, rake yards, etc. to earn money. We took jobs as soon as we were able, saved our money and worked hard at school.
Both of us fucked up some in our late teens and early twenties but were never bailed out. I put myself through college at age thirty-two, while working full-time and raising children. My brother is a biologist and I own a business that does pretty well.
My wife has a similar story. While she's lived in the US all of her life, she grew up in a very poor family and she worked her way through sevens years of pharmacy college.
But I can't help but think that the opportunity is there. Will it be as easy as it will for those who have social connections, money, and easy access to education? Hell no, but it *is* there. Why people don't take it? I really can't come up with a good answer.
YOU ARE COMPLETELY WRONG (Score:3, Interesting)
The immigrants share housing and eschew luxuries
So all of a sudden living in a basement with 20 others and luxuries such as "food" or "" becomes the defacto acceptable minimum standard of living?
Stop saying stupid such as telling it that it should "OK" for people in a western world to live in a situation like a fucking "Favela".
The United States should be ashamed for the low standard of livi
Free phones target the poor (Score:2)
you forgot one (Score:2)
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(Europeans: Yeah, it really *is* that stupid Stateside. Every wireless phone in America costs a minimum of $30/month, no matter how little you use the network. In Soviet America, "wireless competition" means you can choose between the provider offering you "$90 prepaid for 90 minutes that expire every 3 months", and the provider offering you "unlimited minutes and a $30/month subscription fee". Bah!)
Woah, woah... let me get this straight... you get unlimited minutes? For the equivalent of your $30 (about $40 here) we'd only get about 400 minutes. Off peak only. Or 100 minutes on peak. But our prepaid does take about a year to expire. And we can buy prepaid in increments of $10. And we only pay the equivalent of ~US$0.50 per minute off peak (~US$1.00 on peak).
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The voice version of AdSense? (Score:5, Funny)
not scary enough (Score:5, Funny)
you: Increase sales and....the size of your penis with cialis... by reaching out to new demographics....
pointy-haired boss: like women???
Re:The voice version of AdSense? (Score:4, Insightful)
Re:The voice version of AdSense? (Score:5, Interesting)
voice keywords and search topics while mobile.
Areas of possible analysis:
--The voice data recorded is being analyzed to train their system to recognize popular search items, i.e., "where's a pizza place?" in a call. The voice recognition training would then be applied to the Google Cell service triggering an uninvasive, but welcomed, advertisement.
--The requests being made on 800-GOOG-411 are aggregated into marketing data that shows what's popular to look for on landlines or on the move. If the NPA-NXX is generally for a cell phone, Google can say that X block of numbers during Y time tends to make requests for Z. Add GPS capabilities to that, and you've now got many dimensions to add to a model that determines which ads would be the most successful.
not a bad idea (Score:3, Interesting)
Speech recognition of voicemail? (Score:2)
The geek in me says this would be extremely cool (from the technology point of view). Picture this. The Google phone service analyzes your conversation (no data is permanently stored... must do no evil remember). When certain key words are found, Google flags your phone to download certain advertisements to say, your background image. Each time you open your phone to use it, you see a new advertisement targeted to you based on your previous conversation. Add to this a browser, and you could quickly and easily purchase what your are being advertised using your phone.
On a related note, I think it'd be incredibly cool if Google had something which could automatically run a speech recognition algorithm on your voicemail. I could imagine them offering something similar to the iPhone's visual voicemail, with the additional feature that it'd show a rough text summary of each voicemail in your inbox.
Maybe they could even do something similar to what their recently acquisition GrandCentral [grandcentral.com] does, and save recordings of conversations (notifying both parties). Apply speech-to-te
Re:The voice version of AdSense? (Score:4, Funny)
ads (Score:2)
But does it run... (Score:5, Funny)
Ads ads everywhere (Score:4, Insightful)
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Part of Tivo's initial popularity came from the ability to skip advertisements
And Tivo's popularity came at a premium of a few hundred dollars per unit.
The people quite obviously want less ads, not more. As all of google's money now seems to come from advertising, and they seem to only be innovating new ways to push ads, I'd say that they're going down the wrong path.
Companies have to make their money somehow and ads are the premium you pay in this case. I don't think this is targeted at the average consumer with a disposable income who frequently make calls, but instead those with little or no money to spend on a phone or use it so infrequently that an ad supported call here and there isn't so bad
I disagree (Score:5, Insightful)
Personally, I'm fed up with ads, but I see no sign that regular people are fed up with advertising.
Re:I disagree (Score:5, Interesting)
One is brand recognition. Yes, people love to be associated with certain brands, due to the image those brands have created for themselves. But having a brand symbol on your jacket or shirt is not the same as having a full-page advertisement printed on it.
People are grudgingly accepting the ads before the movies. What I see are people talking to each other, waiting for the movie to start, people interested in the trailers, and some ads that are at least funny. But people are clearly there for the movie, not the ads, and are happy when the ads are over.
Regular people are fed up with advertising, but they don't express it, they accept it. But open your eyes and you'll see. Walk down your street and look on the mailboxes. In my street, at least two out of every three mailboxes carry a "no advertisement, please" label.
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Google, so far, seems to understand this little tiny detail well. Their 24feet containers of cash just seem to confirm that whatever that is that they do - it works.
Google Announces Adsense for Games (Score:2)
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You're looking at it from the wrong angle. People want to get away from advertising, but more and more companies want to advertise. Growth there is going up. The more people push back on advertising, the more demand there is for successful advertising models.
I'd say that resistance to ads makes Google more attractive, thus they're going do
Would work for me (Score:5, Interesting)
The only drawback I can see is if your trying to make a 911 call and have to wait through a minute and a half of dice.com adds only to panic and hit 991 and have to do it all over again.
If they do this I'd probably pick one up as probably one of the 2% of Americans that don't currently have a cell phone.
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But ut But!!!-- google said they weren't! (Score:2)
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"They were lying when they said that."
"But they said they never tell a lie!"
"They were lying when they said that too!"
"Duuuuuuuuuuuuuuude!"
Audio ads? (Score:5, Insightful)
In fact, Google has not even said the phones WILL be ad-revenue supported, as far as I can tell. There's a couple quotes from Google on there, but they only deal with Google apps on the phones, not the calling plans.
Re:Audio ads? (Score:5, Interesting)
My guess would be that a Google-phone would have text ads put into it based on emails you're reading (just like Gmail), or things you are searching. When you're not receiving a call, it would maybe display text ads for nearby events or businesses (with location determined from cell tower or maybe just based on your registered home address). Alot of people use their cellphone to check the time, so they would see these ads. Such ads would be relatively non-intrusive. You could look at them if you wanted to, and ignore them otherwise.
I think actually quite a few people would be willing to get such a phone. The article speculates that only teenagers and others without enough money will be interested in an ad-supported phone. I think the demographic is larger than that. A certain fraction of the population can afford, but cannot justify the expense. (E.g. they make enough money, but don't really ~need~ a cellphone or wireless email.) For this demographic, an ad-supported phone would be very attractive. ("$60/month to check my email when I'm on the train? No way!.... Read a few ads while checking my email? Sure, why not!") Plus, plenty of people who now pay for cellphones think they are getting ripped off, and would be more than happy to have one less bill per month, even if it meant having ads on the phone.
The demographic exists, and there is a way to insert ads that will not be obnoxious. The part I'm not so sure about is whether people casually looking at ads is sufficiently valuable for advertisers to pay the usual network connection fees.
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Well, depending on what you are willing to pay, a US cell phone can work just fine in the US and, without any changes, traveling abroad. I know, I've done it. The rates were generally more than getting a SIM in country and calling internationally, but you had the convenience of having a US number for incoming calls. If you want the caller to have to know your international number and foot the bill for trying to get a hold of you, then
scared off? (Score:3, Insightful)
So it is exactly like the Iphone (Score:2)
Free isn't a good price.
Watch out pay-as-you-go phones (Score:3, Interesting)
Can't you see (Score:3, Insightful)
Thats why Google wants to become the service provider itself and wants to buy that spectrum for itself.
Reminds me off (Score:2, Insightful)
The whole thing died for a number of reasons. In order to gather enough revenue to pay for people's internet connection SO many ads had to be served that people just didn't accept it.
I can only imagine this will be even worse when on the cell. Having to *click* on an ad every few minutes is bad enough, but having to *listen*, which takes time, every time before you make conversation is ev
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Google already reads my email conversations, gathers keywords, and serves me ads based on what I talk about. Some people care about that, but I actually don't mind.
How Much are Ads Really Worth? (Score:5, Insightful)
Keep in mind they are bidding up that huge chunk of spectrum coming open soon and if they can snag some of it this could work pretty easily. Start small with a few towers in major markets, preferably near some dark fibre or a NOC they already have in place. Put their sales force to work and cross market to local businesses already using adwords. Lease airtime from other providers in the meantime, under the new regulations they have to provide a quality connection. They have plenty of cash to burn through and I think it would quickly prove itself one way or the other. Obviously offer the chance to "buy up" your service to remove some of the ads. But really try to make the ads real "content". Google has done a good job making ads "content" that actually provide value. In this case, let the consumer know that there's a nearby business offering a special. Don't spam the phone with popups for downloadable ringtones or phone sex lines.
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So the question is how much ads are worth. Right now the low end cell phone market is no different from the land line market, at least if you live in a urbanish area. You can get a phone that you can use to make unlimited local calls in your home market for the same as a land line. As you add more services, the price goes up, but it is still competitive wit
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I'm okay with ads which replace.. (Score:5, Interesting)
Voice ads are old news... (Score:2)
Irony... (Score:2, Funny)
Oh, I dunno.. Dot Bomb? (Score:2)
--
BMO
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As it was with NetZero...
"pushed by the server in the same way voice would be"
But what's to stop someone from figuring out a way to stop the ad display on the phone? The silliest way to defeat NetZero's ads was to install a virtual desktop and use any of the other desktops. To NetZero, the ads were sent and "viewed" but not by anyone who used virtual desktops. NetZero eventually caught on, but far too late to make a difference. All it takes is to interrupt the
Incoming? (Score:2)
Esp Media tried ad sponsored cell phone services. (Score:3, Interesting)
http://www.allbusiness.com/marketing-advertising/
I worked for Esp Media as a consultant, in 2000. Located in Montreal, we built the company with 7 software writers in about 6 months (there was more staff for administration and marketing though). Technically, it worked great. But the sales were lousy and Esp Media lost its funding with the dot com bubble burst. Still, one of my best work experience ever.
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Help! (Score:2)
.
In all fairness... (Score:2)
Google's oft cited mantra of "Don't be Evil" has served them pretty well.
Any ad supported cell phone concept is going to be so comparatively annoying to what -IS- the defacto universal end-user experience, perhaps they will need to add a new mantra.
"Don't be Stupid" comes to mind.
This Should Scare... (Score:3, Insightful)
How do phone ads generate revenue (Score:3, Interesting)
On the web, it's easy enough to be diverted by a good ad to quickly visit somewhere and perhaps buy something. But on a phone, you not only have the problem that the user might want to do something right then (make a call) that they are not willing to divert from, but also have the issue of how to you enable the user to actually make a purchase. I guess perhaps you have a credit card registered with the phone provider and you just click "buy now" when an appealing ad comes up?
Even local ads, where you get ads for businesses around you that you show the business for a discount sounds kind of iffy.
If anyone can figure out how to squeeze money out of that model though, I guess it will be Google!
I wonder if they'll require a certain level of usage each month to keep up service? Otherwise I can see people just getting one for free and throwing it in the car for emergencies.
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Seems you still need some measurement (Score:2)
Sorry to make this about the iPhone (Score:2)
"We see the cell phone industry continuing to evolve," Kagan said. "We're still going to see traditional handsets, but the Apple iPhone was a brand new category in wireless, and it wasn't from a handset vendor and wasn't from a network."
I like the iPhone other than its closed nature, but in what way is it a brand new category in wireless? Because it's pretty? Kagan said it wasn't from a handset vendor but... now Apple is a handset vendor, so it is from a handset vendor. Surely "something from someone who hadn't made cell phones before" isn't a new category of device. And it seems to me the iPhone is "from" AT&T just as much as every other phone they sell. Maybe even more so because you cannot get it from anyone else.
Urgh (Score:2)
Thank you, but I am already blasted non-stop by advertisement from all directions whenever I leave the door. A few years further down the road and the fact that it is ad-free will be a major point of your own home. Advertisement has become aggressive harrassment, to the point where I would not be surprised in the leasts if a study researching the topic would find a major negative impact on mental well-being.
I'd rather pay 500,- than having ads on my phone/PDA.
I hope lots of other people feel th
contextual ads? (Score:3, Funny)
Question (Score:2)
If there were to be such a concept as an ad-driven phone, would it not need some kind of internet connection to get those ads? What if the user prefers not to sign up for a data plan? (Have you seen the prices on Verizon Wireless's EV-DO network? They would drive anyone away!) Does that mean that the user will receive a call every so often for an add like those that lots of users currently get? Or does this mean that the ad will have to be placed in a call because that's the only forceful way that Google c
Free Phone + 700mhz spectrum = ?? (Score:2)
[wild conjecture]
1. Google snaps up some key regions w/ the spectrum coming up on the auction block.
2. Google licenses their territories to the wireless companies as long as they allow wholesale access by resellers.
3. Big telcos build out the infrastructure nationwide. Meanwhile, new competitors can enter the wireless industry since it no longer requires building a whole damn nationwide network from scratch.
4. Google can now realistically dabble with the idea of free citywide wifi and or phone serv
Bubble2.0 (Score:3, Insightful)
People want tech products. Tech products are expensive. Advertising gives us money. Therefore, we should give away computers... I mean phones. Those 2/10ths of a cent we get for every ad are free money. We'll be GAZILLIONAIRES in a week! No need to worry about the hundreds of dollars of investment in equipment and large monthly service fees. If we decide we aren't making enough money, we'll just throw in twice as many ads, and make twice as much money! It can't possibly fail! FREE MONEY!
Now if you'll excuse me, I have to go integrate my customized strategic life-cycle synergy platform into the vibrant emerging vertical market to differentiate my uniquely challenged customers and organizationally leverage our thriving demographic margins under one roof.
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i'm waiting for the day when they put a lesser-brand blender in that thing and blend it up.
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So naive ... (Score:3, Interesting)
Google isn't just "selling ads" they're monitoring people habits. They can monitor what words people talk and with who. They provide a hardware based ID so any services used trough the cell phone can not be anonymized. In the end they can use all that info to "sell ads" and "index the world", two of the Google mantras.
Google marketing is to charge everyone 10% while advertising the 90% discount. People are so prone to technology that they don't care what they're giving back
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Re:further proof (Score:4, Interesting)
A free phone is more useful, even if it is ad supported. Add to that a browser and the Google touch and it's OK.
As I said earlier, I would use this, while in the case of Works I'll stick with notepad.
-nB
Especially since Works is already "free"... (Score:3, Insightful)
You can still order them without it, but it doesn't decrease the price of the system, so isn't Works pretty much free (as in beer) to the consumer already, if you're buying a new computer?
Adding ads just makes it a worse product that still won't change the price of the system (to the customer) whether you include it or not.
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Why the double standard?
Re:further proof (Score:4, Insightful)
Microsoft used to threaten OEMs with higher rates or even denial of Windows if they did things like offered other OSes or bundled other browsers (way back when). Google is certainly large enough that they can commit similar evil acts, but I don't see how this would be one of them.
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I just canceled my phone two days ago because I use it so little that I ended up paying an average of $2.00+/minute.
The current plan is a pre-paid phone, to be purchased when I next need a phone. If this ad supported phone comes out first then I'll get it.
-nB
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Even signing up to a £15/month contract, I can get any of the popular phones for free.
That's only really worth it if you wanted the contract or they're giving away a more expensive phone anyway.
Someone who just wants one for very occasional use in the UK can pick up a dirt-cheap model for £20, and some of those include £10 airtime. Given the lack of a contract, that's as close to free as makes no difference.
Obviously if you're talking a lot, it's not such a good deal, but horses for courses and all that cal.
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