Experts: Google WiFi Would Boost Reputation, Ad Revenue

As the industry speculated Tuesday that Google plans to expand free WiFi access, observers said that such a move could boost the search giant's reputation.

A recent post on Google's frequently asked questions page about a service, "Google Secure Access," which explains how to use a beta application that allows for a more secure Wi-Fi connection, created a buzz Tuesday about Google's possible entrance into the wireless space.

Google hasn't yet confirmed its long-range plans for providing free WiFi access, but the company quietly started offering wireless Internet connections in San Francisco several months ago.

On its frequently asked questions page, Google also states that the program is initially only available at certain hotspots in San Francisco, where the search giant already sponsors free wireless access in partnership with a Bay area startup firm, Feeva. Feeva's WiFi technology aims to target ads and content based on their location on the wireless network.

Merrill Lynch research analysts Lauren Rich Fine and Hester Chang said an expanded free WiFi service could provide an advertising and brand reputation boost for Google, but that investors and Google watchers should remain cautious. "We see this as a positive move for the company, but note that it is still very early days for the service," the report said.

Search expert John Battelle, author of "The Search"--which details Google's rise to prominence in the search space--said that if Google actually is planning to offer free WiFi, the move would provide both increased ad revenues as well as a public relations windfall. "If it does work, it's yet another massive scaled free service that makes Google the good guy," he said. "It'll probably be paired with significant local advertising opportunities, and significant distribution for their AdWords advertising."

But, he added, it's unclear whether Google can offer free WiFi on a nationwide scale. "I still don't believe that the infrastructure exists yet at the end point," he said, "but it could be the beginning of a program that allows that infrastructure to be built."

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