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Google (NASDAQ: GOOG) is in discussions with Sprint (NYSE: S) and T-Mobile US (NYSE:TMUS) to launch an MVNO service on their networks aimed at getting wireless carriers to cut prices and improve their service, according to multiple reports.
According to The Information and the Wall Street Journal, which both cited unnamed sources, the development of the service is being led by company veteran Nick Fox, who has been working on the project for more than a year. Indeed, in May 2014 The Information reported that dating back to early 2013 Google had approached both Verizon Wireless (NYSE: VZ) and Sprint about using their networks for the service, which would be a "a full-fledged wireless service" in markets where the search giant offers Google Fiber Internet and TV service.
The Information said inside Google the service is codenamed "Nova," and that it will likely launch this year. Fox had previously looked at launching the service last fall.
T-Mobile referred questions to Google, which declined to comment, according to The Information. A Sprint spokesman also declined to comment.
According to the Journal, Google has negotiated separate deals with Sprint and T-Mobile to resell service on their networks. While the MVNO business model is widely used and commonplace in the wireless industry, and Sprint and T-Mobile have been champions of that model, Sprint is apparently hedging its bet by putting a so-called "volume trigger" into its contract with Google that would allow the deal to be renegotiated...