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Google Set to Bid $4.6 Billion for Airwaves
Nrbelex writes "The Associated Press is reporting that Google has offered to bid at least $4.6 billion on wireless airwaves being auctioned off by the federal government, as long as certain conditions are met. 'The Internet search company wants the Federal Communications Commission to mandate that any winners lease a certain portion of the airwaves to other companies seeking to offer high-speed Internet and other services. Such a provision, Google argues, will give consumers — who traditionally get high-speed Internet access via cable or telephone lines — a third option for service.'" We discussed AT&T's objection to Google's acquisition of these airwaves last week; this article would seem to confirm Ma Bell's worst fears.
Actually, as I submitted earlier today, AT&T has reversed it's previous stance, and broken ranks with the other major cellular providers, by endorsing FCC chairman Kevin Martin's plan to require open access to 22Mhz of the 60Mhz to be auctioned by the FCC in the 700Mhz band. This statement prompted Verizon to reiterate their opposition to any open access requirements, and Google to state their wish that the entire 60Mhz be auctioned with open access requirements.
Open access rules would require the auction winner to allow any compatible device to connect to their networks on the effected spectrum.
"The worst tyrannies were the ones where a governance required its own logic on every embedded node." - Vernor Vinge
Google's trying to make it so that whoever gets the spectrum has a certain price they can't charge above for leasing the spectrum. As it stands now, whoever gets the spectrum can charge whatever they want, or just block someone completely. Right now, the entry barrier is so high that it's almost impossible for smaller companies to get any slice of the spectrum. If Google gets its way, the entry barrier will be much lower, but still there.
Because companies like AT&T and Haliburton either are presently, or have been in the past run by people who were high up in the government tree at one point (or vice-versa). Dick Cheney left Haliburton in 2000 to become Goerge'e Bushes mate. It's not about companies, it's who runs them and who's connected.. they're all buddies and pals and I bet Google isn't friends with any of them and they're scared.
The magical number is: 09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0
Google's intentions here really are good. The theory is this: Decades ago, AT&T wouldn't let anyone plug anything other than AT&T devices into their lines. It wasn't until this restriction was lifted (which required quite a few years of effort) that fax machines, modems, and many other innovations were able to take place and develop without serious barriers. The wireless spectrum is currently in the same position that landlines were before. No one can "plug" random devices into the wireless spectrum without permission from some company first. Google wants that lifted, and wants the control to be taken away from certain unnamed corporations who have proven they can't be trusted. Opening up the spectrum should enable innovations that aren't even "on the radar" yet. Yes I'm a Google engineer, no this isn't an official response or anything... just another /.er's point of view, but opening up the spectrum is a win for everyone no matter if the final solution is "perfect" or not.
Regards,
Steve
Google wants it because their services are delivered via the last mile from Verion, Comcast, AT&T, and a few other that essentially controlling Google's destiny. It's related to network neutrality, but only slightly.
Ultimately Google knows that a handful of ISPs control the entire consumer network, and they're trying to poke holes in it to give themselves and others a shot at competing.
You were mistaken. Which is odd, since memory shouldn't be a problem for you
The article says that they offered the 4.6 Billion as a first offer because the FCC has said that they need to meet 4.6 at least. This is basically saying, no matter what, you will meet your minimum, so how about considering some of our stipulations because of the nice thing we did just there...
At the end of 2006, Google had about $11.2B cash on hand according to their 10K filings. As of the end of last March (after the BellSouth acquisition), AT&T reports $2.3B in "cash and cash equivalents", and only $24.5B in "total current assets". I'm no broker, but it sure looks to me like Google is in the same league as the telcos.