Google CEO: No plans to compete with mobile operators

Company will focus on its search ads and enterprise software businesses, he said (see video below)

Google has made investments in wireless networks, is testing gigabit-to-the-home technology, and is selling 60,000 Android smartphones a day -- yet has no plans to compete with network operators, CEO Eric Schmidt told attendees at the Mobile World Congress in Barcelona on Tuesday.

"Google benefits from the adoption of broadband everywhere, in mobile networks and in fixed networks," Schmidt said.

But its investment in WiMax network infrastructure, and its trials of FTTH (fiber-to-the-home) that can deliver a gigabit per second to each household, are not a sign that it wants to become a network operator itself, he said.

"We are not going to be investing in broad-scale infrastructure," Schmidt said. "It's a very tough business and it's not one for which we are very well optimized."

Instead, the company will focus on its search advertising and enterprise software businesses, he said, with most of the money continuing to come from advertising.

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Schmidt delivered the keynote speech at Mobile World Congress, then answered questions from the audience about the company's activities.

Increasingly, those activities are going mobile, Schmidt said, with more than half of search queries already coming from mobile phones in some developing markets.

As the company rolls out new applications, its engineers are increasingly developing for mobile first because they are more excited by its greater potential, although the goal is still to develop for all platforms and not to favor Android, the mobile OS that the company helped develop, he said.

Two of his colleagues appeared on stage to demonstrate some of the company's latest search innovations -- on mobile phones.

Hartmut Neven began by demonstrating the company's search-by-voice service. It already understands English, Japanese and Mandarin Chinese, but Neven revealed that it now also understands his native German.

He also showed an enhancement to Google Goggles, the search tool that recognizes images and returns related search results. By linking Goggles to an optical character recognition engine and then sending the output to an automatic translator, Google can now deliver on-the-fly translations of physical pages, not just Web pages.

When Neven photographed a German restaurant menu with his smartphone, Goggles returned an appetizingly accurate translation: "Spring salad with wild herbs and Parmesan cheese wrapped in bacon."

At Mobile World Congress in Barcelona this week Google previewed a new technology that allows its Goggles application for Android phones to recognize and translate text using the phones camera and internet connection.

Some people dream of being able to combine speech recognition and automatic translation into a sort of universal translator, allowing anyone to speak with anyone else, said Schmidt. "We are not quite there -- but it's coming."

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