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Google Patent Could Kill off Cellphone Contracts

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Google's keyword auctions redefined web advertising. Now, a patent filing reveals, the search company wants to do the same thing for wireless services.

Google's patent filing describes “devices, systems and methods" that would automatically poll nearby wireless services to find the best price for a voice or a data connection for a “portable communications device." That connection might come via a cellphone carrier, a WiMax provider, or even a Wi-Fi hotspot. According to the patent, users can either manually select the bid they like best or they can allow the device to connect automatically with the lowest-cost provider.

The upshot? Just as advertisers know they're always getting the market price for keywords on Google's AdWords system, wireless users would always get the market price for wireless data service -- or phone calls. The system could potentially free users from cellphone contracts and locked phones that tie them to one service provider and allow them to switch from one carrier to another, seamlessly, based on which carrier had the lowest price at that moment.

It is an interesting notion. The idea would be that the device or system is smart enough that the switching could be invisible and in the background and, if they could patent it, it could be very disruptive.
Neil Strother, mobile analyst Jupiter Research.

Granted, a lot of obstacles stand in the way of this vision, not least of which would be the unwillingness of entrenched cellular carriers to play ball. Also, the system would require compatible software not only on handsets, but also on any potential wireless connection points -- a major infrastructure hurdle. But the patent is striking for its scope -- and for the glimpse it gives of Google's lofty wireless ambitions.

The patent covers both voice calls and data transmission sessions and also covers a device that will wirelessly connect to a number of carriers, pull pricing information and then select a carrier based on the information.

The patent, filed in March 2007 but published today, is an indicator of how the company sees mobile as its next playground.

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