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Monday, November 13, 2006 9:15 AM/EST

I Schmidt You Not: Google CEO Says Cell Phones Should Be Free

In the near future, mobile phones should be free if the user accepts targeted advertising, Google CEO Eric Schmidt said this weekend.

"Your mobile phone should be free," Schmidt told Reuters. "It just makes sense that subsidies should increase" as advertising rises on mobile phones. *

Schmidt's comments imply that Google sees a high adoption rate for mobile Internet access with a concommittant drop in handset prices. The average price for a handset in the United States has fallen 30 percent in the last year, according to PriceGrabber.com. And in some markets, consumers are adopting mobile Internet access faster than PC-based access.

Google is working on several mobile initiatives this year, including text-based advertising on cell phones, a Java-powered Gmail app, traffic maps and geolocation.

*p.s. Psst! Google Watch's mobile phone is already free, but don't tell Mr. Schmidt.

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Comments (8)

Disgruntled American :

I don't mind paying for a cell phone if it prevents me from being inundated with advertisements. The writer of this story presents this announcement as if the consumer is LUCKY to be receiving these free phones. In reality it just allows the advertisers easier access to a wider consumer base. NO THANKS...i'll pay for my phone.

Educated and Fit American :

Something tells me that Disgruntled American and I are in the minority...stupid fat lazy americans will jump all over this. That's why we are in this mess with debt and politics. Because too many people have the attitude "no, don't inform me; entertain me and I won't worry about deforestation, global polution or the fact that we are destroying the planet and the whole world is pissed at us. "Just give me a free phone so that I can watch the O.C. whereever I am whenever I wan't. Will it play Ashley Simpson mp3's, too?

Joe :

There's no way I would have a cell phone with advertisements on it. It's bad enough that I get junk mail, spam, advertisements on most web sites I go to, and have to watch almost as many minutes of commercials on T.V. as the actual show. I would rather just pay for the phone.

Brodie :

I agree with Joe and Disgruntled American. I would much rather pay for a service than be bombarded with ads and get it for free.

Sounds Good To Me :

Cool Eric. And should TVs be free too???

Douglas Kirschner :

I don't get it, Steve. How do you get that free phone? What am I missing?

rileydawg66 :

Hmmmm....I doubt that Verizon and other cell phone carriers, in addition to the mobile phone manufacturers like Motorola are going to let this happen quite as easily as Google would like. This statement is a little premature and gives away a bit too much from a competitive perspective. I liked it when google signed the ad deal with ebay then launched their paypal competitor Google Checkout

Steve Bryant :

Doug -- I reupped my contract with Sprint and got a new phone for "free." And by free I mean I pay entirely too much per month for a two year contract.

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