Google set to announce low-cost US wireless service soon

Internet giant Google is set to announce its new wireless service in the US as early as 22 April, The Wall Street Journal reported, citing people familiar with the matter.

Google's entry into the US wireless industry, which is already experiencing a severe price war, is expected to worsen the situation further.

The newspaper noted that Google's service would allow customers to pay only for the amount of data they actually use each month. Google's move is expected to be a severe blow for telecom players such as AT&T and Verizon, which make contracts with customers and charge a bulk rate for certain amount of data.

The key feature is being introduced by Google, as a study by a company called Validas found smartphone users typically waste $28 each month on unused data.

Google's service will run on the networks of Sprint Corp and T-Mobile, which have agreed to carry the traffic, WSJ added, citing sources. It will initially work with Google's latest Nexus 6 phones, which will be able to switch between Sprint and T-Mobile networks, depending on signal strength.

In addition, the service is expected to use Wi-Fi networks, when they are available, to route phone calls and data, reducing subscribers' bills further.

Google executive Sundar Pichai earlier said the service would be a small scale experiment and was not intended to disturb the current system.

"I think we're at the stage where we need to think of hardware, software, and connectivity together. We want to break down the barriers on how connectivity works," he said.

Nevertheless, the company has the ability to make a paradigm shift in the wireless industry, given its huge resources and influence.

In 2010, Google entered into the US broadband market with a project called Google Fiber, which charges much less than rivals including Comcast, AT&T and Verizon.