Google can create a new narrative in the mobile market and very well may encourage other companies such as Facebook, Yahoo and Microsoft to jump into the wireless service business, a former executive with Sprint said on Wednesday.
Google Wednesday that switches between Wi-Fi and cellular networks to curb data use and keep phone bills low. The service, called Project Fi, will work on the company's Nexus 6 phones and will be hosted through Sprint and T-Mobile networks.
Matt Carter, former president of Sprint's enterprise solutions group and former president of Boost Mobile, said it will be interesting to see if other tech giants, such as Facebook, Yahoo and Microsoft, "will look at Google's entry and say to themselves, 'Hmm, should I be considering this as well?' "
He thinks it could be a good idea for someone such as Facebook because the company doesn't have to build a network and can instead work through wireless carriers like Sprint.
"What Facebook brings to the party is what they do. They are good at branding and marketing and doing what they do around social media," Carter said in an interview with "Closing Bell."
"They don't have to take on all the infrasructure. There are other enablers out there like Sprint that can provide companies like Facebook an opportunity to easily enter into the mobile category."
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As for Google, what it brings to the table is its great brand name, Carter noted.
"Google's entry quite frankly probably creates an opportunity for a fresh face to come into this industry and provide a different kind of model, a different kind of behavior. Google doesn't have the baggage of the other carriers," he said.
Google's new service will cost $20 a month, plus $10 per gigabyte of data used. Customers will get money back for unused data.
Whether Google offers better pricing, a new consumer experience or other devices, "they can create a new narrative in the marketplace," Carter said.
—Reuters contributed to this report.