Google wireless could push data costs lower: Analyst

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Why Google is going wireless

Google's big announcement this week about becoming a wireless carrier was less about competing with the likes of Verizon and AT&T and more about driving down the costs of wireless data, according to Piper Jaffray tech analyst Gene Munster.

The search giant announced its plan to experiment with wireless services in the next few months at the Mobile World Congress in Barcelona, Spain. Rumors that Google might offer wireless service along with Android phones surfaced earlier this year, but the company didn't confirm those rumors until this week.

In a note published Tuesday, Munster said: "At the end of the day, Google does not want to be a wireless carrier. The wireless strategy feels like Google is trying to put pressure on AT&T, Verizon, Sprint and T-Mobile to offer low-cost unlimited data to the consumer. Google benefits from unlimited wireless data because people will use their phones more, and more Internet use is good for Google, especially with mobile YouTube. "