Google share price up, latest service to work only with Nexus 6

The new wireless service from Google Inc is expected to only be compatible with the technology giants latest smartphone device, the Wall Street Journal reported.

Googles new service, which would allow its users to switch between Wi-Fi and cellular networks, will work on the companys Nexus 6, the Journal said citing people familiar with the matter.

The service wont be available for any other Android devices, including Nexus 5 and lower, party due to the fact that many smartphone makers modify the operating system before they install it onto a device. The latest Google smartphone was manufactured by Motorola Mobility.

The Journal said that coordination between the designer and the manufacturer is key component for the success of the service. Motorola, which Google sold to Chinas Lenovo in January, would be a good fit to test the new service, and also marking the first device of the family assembled by Motorola.

The Nexus 5 and 4 were manufactured by LG Electronic, while Google worked with Samsung to develop earlier versions and with HTC over the first Nexus.

The sources explained that the service will identify and switch between available Wi-Fi networks and the cellular services provided by T-Mobile and Sprint in order to improve call quality and internet speed. Additionally, the latest version of Android has a feature that changes Wi-Fi networks in-line with the internet usage of running applications.

During the Mobile World Congress in Barcelona earlier this week, Googles Sundar Pichai confirmed that the company is working on the new services and said Google plans to launch it nation-wide but on a “small scale”.

Mr. Pichai added that Google seeks innovation with its latest project rather than to directly compete with the biggest U.S. mobile carries, including AT&T and Verizon who have more than double the subscribers of Googles mobile partners.

Limiting the service to only one device is a good way to have a small customer base spread across the country. Google is expected to launch the service by the end of March.

“The focus of Google’s network could be on connecting devices other than phones, as watches, cars and other devices increasingly will include mobile connectivity features,” Mr. Pichai said.

Google gained 0.34% on Thursday and closed at $575.33 on the NASDAQ, marking a one-year decrease of 4.34%. The company is valued at $391.93 billion. On Friday the stock edged up 0.21% to $576.54 during pre-market trading.

According to CNN Money the 40 analysts offering 12-month price forecasts for Google have a median target of $625.00, with a high estimate of $700.00 and a low estimate of $530.00. The median estimate represents a 8.63% increase from the last closing price.