Google’s Wireless Service Will Adopt a Usage-Based Model

Google’s upcoming wireless service could change the industry.

Google’s upcoming wireless service, which could launch as early as Wednesday, will reportedly allow consumers to pay only for data that they used, sources told the Wall Street Journal. Although Google didn’t confirm the report, the usage-based model will pose a threat to traditional wireless plans and might even pressure carriers to alter their abusive practices in the same that Google Fiber challenged the Internet industry.

Giant wireless companies like Verizon, AT&T, Sprint, and T-Mobile are engaged in a price war. These established carriers offer plans that require consumers to pay for data each month. The problem is that many subscribers aren’t consuming their allocated data. In fact, in a 2013 study by Validas, a mobile intelligence company, it found that around $28 are wasted each month on unused data.

Additionally, Google’s wireless service will run on networks belonging to Sprint and T-Mobile, sources said, confirming earlier reports that Google will be reselling wireless services from carriers. The report also confirms that the new wireless service will work only on the Nexus 6 smartphone, Google’s latest flagship device. It is unclear if more devices will be supported in the future. What is certain is that Google’s wireless service will also use Wi-Fi networks to reduce data consumption.