Theory: Google will buy T-Mobile (within 5 years)

With T-Mobile working with Project Fi (which I did predict a couple of years ago), they would be a carrier that has the impact to really bring Google’s vision of owning the (entire) internet from server to device. Owning the customer experience end to end has to be* a massive driving force for Google. Why bother with devices (Android, Chromebooks, Glass, etc) if that isn’t the ultimate endgame? It’s easier to buy the existing infrastructure from a cellular perspective (than building it from scratch) and you can easily couple this with Google’s massive WiFi access point knowledge (and their new push for free wifi with Sidewalk Labs**).

Buying T-Mobile, even if it’s a wholly owned subsidiary (which I would assume that’s how it would go***), would give benefits to both Google and T-Mobile. Both companies have similar ethos when it comes to free/low cost internet access for all. T-Mobile loves to do things to shake up the status quo (Project Fi a great example) and nothing would really shake up things in both wireless and the internet space like getting bought by Google. Google would be able to fold this into their existing offerings like Google Fiber while allowing T-Mobile to take advantage of their great infrastructure/backbone.

Crazy you say? Look at the AOL/Verizon deal (which is the opposite flavor) and get back to me.

From a price perspective, Google could buy T-Mobile in cash if it wanted to (I really doubt that). T-Mobile has been on a subscriber growth tear in recent months and it appears they will soon be the #3 carrier in the US. Snapping T-Mobile up now would probably save Google some serious cash over the next decade while giving their stock a nice boost (depending how that part shakes out).

Plus, don’t forget the original Android device (G1) was launched on, you guessed it, T-Mobile (in 2008). They have been working together for a long time.

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*This is a theory of mine; I don’t have a source inside Google to verify.

** Yes, this offloads data off the cellular network, which also provides some advantages.

***I can’t think why you would want to scrap T-Mobile’s brand value (especially on a rebound) but I would be shocked if Legere isn’t still the CEO/President of this new venture.