Google Ready to Bid on 700 MHz

Seppanen Style writes "The 700MHz spectrum auction looks like it's going to be heated. Google CEO Eric Schmidt has all but confirmed that Google will make a play for the spectrum that will be on offer next January. 'In effect, this could give Google control of the entire pipe between customers and Google servers, a move that could be very good for business strategy, even if the wireless network is not a major profit center. Companies never like to be at the mercy of other companies, and Google is no exception.'"

Comments

Offtoic, sure...

[veganboyjosh]

...but this being slashdot, I rarely rtfa's. Are all of arstechnica's articles well laid out like that? I'm used to some other websites whose articles are 3 paragraphs spread out over 17 pages or the like. I got to the end of this one, expecting more article. Turns out it was the end of the thing.

Kudos to them, I say.

Google wireless

[HaeMaker]

Here's what I want:

$29.95/mo 3G wireless internet w/ basic voice plan.
Free text. because paying for text when it costs the telco so little needs to stop.
Bluetooth data access that actually works.

If they can achieve that (by 2009, not too hard), the phone system is done.

Only problem? the cell towers.

Do SOME good, and people like you complain

[Valacosa]

If Google wants to "do no evil" why don't they fund the removal of [George W. Bush]?

Hey, better yet, why don't they convince the UN to send peacekeepers to Darfur? Why don't they fund alternative energy research? I'm sure they have enough money to get a fusion research lab up and running. Why don't they fight cancer?

The problem is even if they did set up a lab to do research with the intent of "fighting cancer", some asshole like you would complain they're not fighting AIDS.

Anyone who wants to fight to do good in this world only has limited resources to work with, as such, one must pick their battles. Taking on the crooked telco companies is worthy enough for me.

Estimates?

[msauve]

We don't need no stinking estimates. It's not hard to look up the real numbers.

Bargaining position?

[morissm]

I am not sure Google is really interested in winning the auction. Their play might be to put pressure on the telcos in order to strike an access deal with them.

The telcos have something that Google wants: unfettered and maybe even exclusive access to their users. Telcos however are notorious for their habit of restricting their devices' access to services that net them more profit. Google knows that and knows that wireless devices may be tomorrow's prime mean of accessing the Internet. If this were to happen, search and content providers would have to strike very onerous deals with telcos in order to maintain access to their clientele.

As a result, the FCC's decision not to require open access to the Internet for users of the 700Mhz spectrum threatens to put Google's future in the hands of the telcos.

The menace to enter the telcos' market strenghtens Google's barganing position because
a) Google has the money to make good on that threat and may chose to do so as a defensive measure
b) the telcos need that spectrum a lot more than Google does.

I wouldn't be surprised to hear in the coming months that Google has struck many major long term deals with several telcos and has finally decided to bow out of the auction.

Re:Bargaining position?

[Frenchy_2001]

That's where the fun is: They "win" without even paying a cent. They succeeded in adding the openness term to the auction. Now, they just need to place *ONE* minimal amount bid and look at the other players rip each other's throat to block them access to the airwaves. But, by placing the bet, they ensure that the openness clause will take effect

In the end, they'll just have to put out a device on the standard.

Now, they definitely could use that spectrum to actually create a last mile connection network. As they are rumored to already own a bunch of dark fiber, they would have a top to bottom network infrastructure. Enough to scare the telcos. Maybe Google will enter that market to ensure a free (as in unrestricted) connection to their customers. Maybe they'll just stick to online service and enter devices on a free network. The uncertainty will push the telcos to bid higher and they certainly don't have as much cash laying around as Google does...

Re:Bargaining position?

[morissm]

That's where the fun is: They "win" without even paying a cent. They succeeded in adding the openness term to the auction. Now, they just need to place *ONE* minimal amount bid and look at the other players rip each other's throat to block them access to the airwaves. But, by placing the bet, they ensure that the openness clause will take effect

First, Google didn't get from the FCC what they really wanted: unfettered Internet access for the users of that Spectrum (see condition 3 of their open letter which is designed to ensure that if the telcos provide partial or restricted access to the Internet, some other company will be allowed to redress the situation). The other conditions, I suspect, were hedges to mitigate loophole exploitation by the winner of the auction.

Second, Google does not need to bet one cent on this auction for the the FCC to impose the "open application" and "open devices" terms. The FCC already agreed to impose these terms on the auction whether Google bids or not. Google only agreed to bet the indicated sum if ALL four terms were imposed.

Third, IMHO the two terms the FCC agreed to are worthless by themselves. If the operator of a network decides what that network has access to, why would it matter what device or application one is allowed to use. These devices and applications are only as powerful as the network services they are able access.

Google (and the american public) got screwed by the FCC pure and simple.

In the end, they'll just have to put out a device on the standard.

Nope. Whatever device Google comes up with, the network operator has no obligation to provide that device or application any access to anything on the Internet or any other network.

Now, they definitely could use that spectrum to actually create a last mile connection network. As they are rumored to already own a bunch of dark fiber, they would have a top to bottom network infrastructure. Enough to scare the telcos. Maybe Google will enter that market to ensure a free (as in unrestricted) connection to their customers. Maybe they'll just stick to online service and enter devices on a free network. The uncertainty will push the telcos to bid higher and they certainly don't have as much cash laying around as Google does...

See above. Maybe I'm missing something but with all due respect, I don't get why your post was modded +5 insightful. To be fair though, I spent the last 20 minutes re-reading all the news articles on that topic and most journalists seemed to have missed the point just as badly.

Re:billions and billions of dollars

[Chyeld]

Eff the best bidder, I've had SBC and AT&T and their ilk handling my telco needs all my life and I know exactly what I'd be getting with them being in control. A pile of useless crap, over priced and under maintained.

May GOOGLE win it. Even if they do absolutely nothing with it and just sit around using the paperwork as toliet paper, it's a fair cry better than letting the rapidly reforming Mother Bell have a hand over it.

Stuff like this makes me want to break out the Christmas fund and invest in Google, not to get rich off them (though that wouldn't hurt) but to help encourage companies that actually seem to make a positive difference in the world.

And no, I'm not naive enough to think that Google is an angel, but their track record is a far far shinier one than any of the other folk that'll be in the bidding for this spectrum. And I'm willing to trust them alot farther than I am the companies that have already proven to me what their core ethics are.

Re:I pray Google will lose

[Kelbear]

Google is the one who made the minimum bid proposal of 4.6billion that got this auction reserve to be set at 4.6billion. And this proposal was on the stipulation that the winner would be required to lease out to competitors. Thus, competition. Even if Google wins. Even if Google loses.

Google isn't worried about competition, they're worried about being locked out.