Google May Bid in Wireless Spectrum Auction
July 20, 2007 4:46 PM | Google | Google | Comments (1)
Today Google announced it intends to participate in the federal government’s upcoming auction of wireless spectrum in the 700 megahertz (MHz) band should the Federal Communications Commission adopt a framework requiring greater competition and consumer choice.
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More than likely if Google enters the cell phone market, cell phone service will be free which will take a big chuck of profits from the existing cell phone carriers. Google may also allow any phone to work on its network. So consumers who can unlock their cell phones could transfer it to Google's network for free service.
Of course Google would make money by placing ads on millions of cell phone screens or have users listen to ads when calling a phone number. For users using their cell phones to access the Internet, well I don't have to tell you; Google will be offering all these services for free with money being made from advertising.
With Google having $12.5 billion dollars in the bank (cash, short term investments & receivables) with no long term debt, more than likely Google will win the auction. Even if Google loses the bid they are urging the FCC to allow open access to the wireless spectrum. In the filing with the FCC on July 9, Google urged the Commission to adopt rules for the auction that ensure that, regardless of who wins the spectrum at auction, consumers' interests are served. Specifically, Google encouraged the FCC to require the adoption of four types of "open" platforms as part of the license conditions:
Open applications: Consumers should be able to download and utilize any software applications, content, or services they desire;
- Open devices: Consumers should be able to utilize a handheld communications device with whatever wireless network they prefer;
- Open services: Third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
- Open networks: Third parties (like internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee's wireless network.
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Comments
Posted by: Patrick | July 22, 2007 11:15 PM
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