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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.
Google plans on winning, and also wants the winners to be mandated to lease off part of what they win?
Let me know if I read that wrong, but it sounds like Google is morally good.
The telcos are not going to let people use the ether for their own experimental ideas.
Like they say, it destroys innovation!
Though this may sound sarcastic, I'm asking an honest question.
Why would a closed spectrum discourage innovation? I would think not forcing people to "lease" portions of the spectrum to higher powers would curb the high cost that hinders most of the world's greatest minds.
"Open access rules would require the auction winner to allow any compatible device to connect to their networks on the effected spectrum."
I think you meant to say that the auction winners would have to lease, at a wholesale price determined by someone, a third of the bandwidth to other service providers that customers would then pay to access the network.
For this to be anything more than just grandstanding for good karma by Google I'd like to see how the wholesale price is set and why it's a lease instead of a purchase. Google pays a one-time fee for the airwaves and then leases them off a third of them which generates a nice revenue stream for them. The people doing the leasing still have a competitive disadvantage since they always have a bandwidth charge to add to their business model, while the purchasers will recoup their original investment over time and not have that leasing charge on their P&Ls.
Your mind looks a little cramped. Why don't you stretch it a little?
So they're basically buying a new market,and hoping to get enough other folks into to it to attract customers? Expensive and risky... but very cool.
You are right and I agree with you. However, this is unfortunately the way things are right now. The fact that Google is willing to use their earnings to try and open this for more than a few is definitely a good thing. As much as it actually sucks.
They want the requirement even if they don't win it, so they're saying we'll bid (and hence the final price might be higher) if you put this clause in the agreement. Google are not going to win the bidding anyway if $4.6 billion is their max bid...
assumptions that
1) Maximizing US Federal Government revenue is equivalent to maximizing public good.
2) That airwaves, which by natural law are a shared public resource, can somehow be auctioned/sold.
It is the modern equivalent of the English Enclosure movement.
"National Security is the chief cause of national insecurity." - Celine's First Law
As a person with a vested interest in a large Wifi/900/5ghz system that has many pleased users, I welcome Google and their stance. We'd love to lease bandwidth and open devices, as the 700mhz would allow us to penetrate in places unthinkable until now, with power that would make you shiver. I'd imagine Ubiquiti's frequency freedom would scale nice, with the addition of some wattage. I'm not happy to see AT&T taking over yet another town, charging $70 a month for GSM coverage, using technology only they will sanction. I'm all for Google setting base rules to how the radios will share the airtime, and if someone wants to use a different modulation supported in a software radio they've installed, it's kosher with them. In any case, 700mhz should afford at least 2megabit imho, even more in the future, and with the mhz available, possibly 20-30megabit. I don't want to see this in the hands of someone who just wants to sell data plans, it's much better in the hands of someone who wants to show ads, and let other people sell the service. I'm all for the open system, just like local competition in DSL is allowed, so Google is important, but dispensable, as the most desirable element is the reselling of the service. I for one know, my customers will choose us over Google, Cingular, Sprint, Nextel, or Verizon.
Actually, 4.6 billion was their MINIMUM bid. and with pockets like theirs i wouldn't be surprised to see that number rise significantly.
I'm rooting for google here, i like how they're playing this one.
No one can "plug" random devices into the wireless spectrum without permission from some company first.
Surely the obvious solution is for the government to retain ownership?
Then companies who want access can lease from the government rather than a competitor.
Why would you insist on handing over a monopoly to a private corporation in the first place?