Google sees free, ad-supported phones in the future

In a recent interview, Google (NSDQ: GOOG)’s CEO – Eric Schmidt, said as advertising assumes a greater role across mobile networks, consumers should receive their handsets for free. Following a speech on the theme of business innovation organized by Italian student groups and the Graduate School of Business at Stanford University, he said: “It just makes sense that subsidies should increase”, as advertising rises on mobile phones.

Schmidt beliefs that mobile advertising revenues will eventually equal traditional Internet ad revenues. Google won’t be the company to give away phones itself, nor is he aware of similar plans underway from either carriers or handset manufacturers.

Of course, it’s still in the realm of visions, but who knows – it’s Google we’re talking about here. I’m sure most of us want a free, ad-supported smartphone.