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Google Confirms Intent To Bid for 700MHz Spectrum
narramissic writes "Today Google put an end to the 'will they or won't they' debate with the announcement that the company intends to join in the bidding for 700MHz wireless spectrum in late January. 'We believe it's important to put our money where our principles are,' Eric Schmidt, Google's chairman and CEO, said in a statement. 'Consumers deserve more competition and innovation than they have in today's wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet.'"
And what would those be these days?
...put an end to the 'will they or won't they' debate...
I never saw any sound evidence put forth that they wouldn't bid on this spectrum. As far as I was concerned this was a sure thing. Here's to hoping they win the auction!
I got a catholic block.
I'm still undecided whether Google as a whole genuinely are agents of good in the corporate world or if it's just the spin they're clever at putting on things, but if the latter is the case... then damn they're good.
Strike while the iron is hot.
Google is on fire now, and as far as the market is concerned, can do no wrong. There will not be any future time where Google will be able to put together the sort of money needed to make these types of investments.
But that doesn't mean they will succeed in their wireless plans. As cool as they are, the wireless spectrum is a well established area with not only wireless carriers already bumping against each other for more elbow room but also broadcast radio and television conglomerates. Google can't play David successfully forever. They may have done a great job on the web where they led the technology, but here they will be following and a look at their online office suite, it is clear that they are poor followers.
They are an ADVERTISING COMPANY!
No different from any Madison Avenue hucksters trying to sell you junk you don't need.
The fact that that have a gazillion dollars gives them giant egos and lets them imagine they are different. They have very good PR right now and the stock is flying high. Please ignore the fact that they will hand you and your data over to anyone who asks, and sell your soul for a buck-fifty. Wait until their stock tanks when everyone finally catches on that only the ADVERTISING makes any money and all these other ventures are money-losers, and then they will get desperate and look like the tools they actually are.
Nothing to see here move along.
Some time ago I started an article on wikipedia regarding the auction. It has not progressed much.
Could someone help please?
http://en.wikipedia.org/wiki/700_Mhz_wireless_spectrum_auction
Unfortunately there are many parts of it that I still don't understand.
* It seems that it comes with several 22Mhz blocks. '
* Are they saying the actual 22mhz band or are they saying the first 22mhz of the 700 mhz band
* Rules specify that it's split in four major areas, southeast, northeast, etc, what does this mean?
* What four original restrictions did google want on auction? Which two were granted?
Nature journal lied in Britannica vs Wikipedia Ask to retrac
Having had only a tiny glimpse into the world of government contracting, I find it impossible to believe it will all come down to the price Google pays.
/.'ers with contracting experience will probably back me up when I claim the price offered (or paid in this case) has nothing to do with winning a contract.
Some other
http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
Think of it like an auction. The more people competing, the higher the price goes. You add in all the reports that estimate where a company will bid, then another company tops that, then another tops that....
In the end, 5 bidders bidding will probably jack the price up to higher than 2 bidders.
And who in the end pays that price in some form or another? Yup, us.
So while I am all for increased competition, and so far google hasn't passed on too many costs to us (I assume it gets passed on the the advertisers), it still makes me nervous. What if they don't win? Where do the prices go?
I think they need to split up the spectrum into parts, and then only allow a certain number of parts to be owned by one entity. That allows for competition, and therefore cost cutting. Just an idea.
What does Google plan to do with this spectrum? Is the end result for themselves or for consumers? If consumers, will it be ad based, or cheap and flooded with Google-ads? And if free to connect, how much will the hardware cost? Or, does Google plan to enter the cellphone market like every other provider, screwing users with 3 year contracts?
Google is not a hardware company. They should stick to what they are good at, which is being an ad distributer. I believe this is a big mistake they are making.
Yup, the two head honchos at google realize this and figure hey, we better buy something worth while with all the fake money we have so they buy the 700MHZ spectrum. A very sound investment as when the house of cards they have built comes crashing down they will be left with a pile of rubble and rights to a spectrum worth more then they could ever dream.
A new and exciting development.
The key here is that they have got the wireless companies where they want them even if they don't win the auction. If the other companies knew that Google was not going to bid on it then they would just wait for it expired and be put up without the requirements. Now Google assures themselves an open network even if they don't win because the other companies have to follow the requirements.
"If you like Battlestar Galactica, you're probably a huge nerd." -Stephen Colbert
I thought 700MHz was somewhere in the television broadcast band?
Je fume. Tu fumes. Nous fûmes!
cause I don't.
It's very simple.
...
1. Buy the spectrum at 699.9 MHz.
2. Buy the spectrum at 700.1 MHz.
3. Put Seattle garage band music on both bands and bleed it to the edge
5. Profit!
-- Tigger warning: This post may contain tiggers! --
"We believe it's important to put our money where our principles are," Eric Schmidt, Google's chairman and CEO, said in a statement.
"We believe it's important to develop new sources of revenue wherever we can to keep the stockholders happy," Eric Schmidt, Google's chairman and CEO, said in a statement.
"Consumers deserve more competition and innovation than they have in today's wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet.'"
"The stockholders require more diversity and multiple revenue streams to support our close-to-$700 stock price, otherwise they might start to get nervous and sell. We will be the real winners of this auction, but we'll frame it as a populist victory because the media's here and they want a sound byte."
I'm not opposed to companies making money by any means, but let's at least be honest with ourselves that Google isn't doing this out of a sense of altruism.
... That google's purchase in the near future will be for a substantial plot of land (I'm talking miles by miles.) Their actions kind of remind me of Walt Disney's original plan for EPCOT - He wanted it to be the perfect '50s neighborhood (the Leave-it-to-Beaver kind, not necessarily realty.) They're looking at wireless, data centers, power/electrical considerations, gathering information on public transportation (google.com/transit). I don't know. Such a diverse set of items - some without direct revenue generation potential in the near future - is just strange. An attempt at a Utopia project (dear Lord, if it happens, don't "Gutopia") might not be realistic, but it's the only thing my (very) limited imagination can come up with...
Bark less. Wag more.
This is the motivation behind the move to digital television. Free up spectrum so that it can be sold.
What, you thought the government was pushing HDTV just so you'd have a sharper picture?
The US free market: two halves of a government-granted duopoly are free to set the market price.
Aren't they an "innovative technology company"?
:)
They simply pay the bills with their advertising revenue.
I am waiting for Google to take the final step toward domination of the universe.
Sure, now they have the 700 MHz spectrum, and soon they'll own most fiber in the US and Europe, and after that the world, but these are trivial things...
What really matters is their dominion over the life force that suffuses us all.
Come to me, gentle consumer... take my hand and let me show you the power of the Dark Side
Google has nothing to lose and everything to gain--it's an auction for crying out loud. If they lose the auction, they win by pushing the telcos inline with the gphone alliance. If they win, well, they have bandwidth for an internal company network and a R&D network (think beta apps FTW!). Problem is they can not provide free [production level] service to consumers cause they are not geared up for customer service at that scale, unless your willing to accept telco QoS. I suspect they are planning to lose the action, but it's an easy chess move and adds to the bling status of Google.
Step 1: Buy Google Stock.
Step 2: Wait for Google to Announce intent to Bid
Step 3: Sit on Google stock
Step 4: Sell Google stock after successful acquisition of 700 MHz Spectrum
Step 5: Profit!!
~Sticky
/You think it's funny, but isn't this what you should be doing?
//Currently on Step Dumb@ss: Kick self for not buying Google stock last week.
Would Android satisfy the FCC restrictions? If so, then Google could lock down their newly acquired 700MHz spectrum (if they win) to only Andriod devices. This would essentially make this "open-access" spectrum a Google controlled spectrum. All they need now is a wireless carrier and some phones to dominate another market.
I've got a 3.5 MHz Spectrum in the attic if they want that.
Reduce, reuse, cycle
The good news is that Google will make all cellphones better if they get into the race. The reason? Openness. From the beginning of time it seems the US carriers have locked down there phones so you can't do things like load MP3 songs and java applets to them without buying them online. They have the java networking locked down so you cannot connect to everything or use regular sockets (IE not web).
Right now companies like Verizon are panicking and racing to open there networks (IE http://www.phonescoop.com/news/item.php?n=2552), if google gets spectrum it will be good for all because google will have lots of cool applications and programs on there phones, and the other carriers to even compete will have to open up there phones for development to everyone.
Also the 700mhz spectrum is a great place to be for a new network as you can get better coverage and need less cell density when your starting out.
-M
They have a decent core ad revenue buisness but they are just THROWING their money away at things that they know nothing about and have no buisness plan for. Investors are going to get tired of it. If Google just starts tossing money out "for their principles" with even LESS chance of recouping it than in previsous fruitless ventures, people will simpley stop giving them any more money. Stock price /could/ severely DROP if they go through with this...
Of course we all know that "logic" no longer controls the stock market at all or Googles share price would only be $200 as it is so who knows...
Contrary to popular belief, coding is not all free blow-jobs and beer. Those things cost MONEY!
Google chose to announce this on a Friday to piss off Robert Cringely, who now has to wait an entire week to write wild speculations about Google's plans.
Let me sum up the business plan of Google, cause it's a variation of one that has been used for hundreds (maybe thousands) of years:
1. Buy large tract of undeveloped land in an area that is incredibly congested.
2. Invite people to propose ideas for the use of said land.
3. Charge the people with the best ideas for the priviledge of using the land.
4. Let idea people build on the land, charge for it.
5. Charge people who use the new infrastructure on the land.
6. When the idea gets old, evict the old idea people, and start over at Step 2.
Now, replace "land" with "Spectrum". Welcome to Money City, now owned by Google.
~Sticky
/Don't have a business plan? COME ON!!
//Seriously, DUH!
I'd start more here.
There are six 22MHz blocks in the 700MHz band up for auction. Each bidder bids on one or more 22MHz blocks. Note that the blocks are assigned for different purposes and larger and smaller geographic areas. Block C, for example is for regional uses, and therefore there will be several license winners for that particular 22MHz block, each winner coming away with a region. Block D is a nationwide license, so one winner gets use of that 22MHz block throughout the United States. Overall, there's 1099 available licenses with varying uses, modes, and geographic areas up for auction. The fact sheet gives a little more of a breakdown.
Here are the regions.
My guess is that Google will be going after block D, which is one licensee, with nationwide geographic coverage.
personally I think they should name it googleherz.
There are six blocks, two 12MHz, one 22MHz, one 6 MHz and one 10MHz.
No matter what the case: Worship the Goog.
(if "the singularity" or "skynet" or whatever you want to call it ever happens, it'll be out of this mass conglomeration of data)
corporations are bad! money is bad! spectrum is bad! it's nice to know there are so many self-employed philanthropists on /. would you guys get together in utopia and bid on this for the benefit of all mankind? please?
dunno, i'm willing to give google a chance on this one. there's NO WAY they can be as inept, immoral, incompetent and possibly inbred as the rest of the mobile carriers in the U.S.
"but let's at least be honest with ourselves that Google isn't doing this out of a sense of altruism"
So what? Since when does the intention of the actor impact the result? Isn't it better than it was? Do you see latent downsides that are hiding in the FCC's rules and Google's bid that overwhelm the positive rules that Google has pushed?
Contrary to what seems to be the anti-capitalism** mindset around here, a company can pursue profits in a manner that creates long-term value for all stakeholders and is net beneficial to society as a whole. Google might not be acting strictly out of altruism, but that doesn't mean that the result can't have a net positive impact on "The Internet" or "The Information Communication Fabric" or whatever.
Altruism with no concern for profits? I'll grant you Google doesn't act that way.
- A search for long-term value, that is guided by smart, competent and seemingly well-intentioned founders and management?
- Who appear to have a fairly-unique business mindset focused on creating and developing new ideas into open platforms that they then leverage into profits?
- While seeming to interact with 'The Internet' in a open, honest manner?
- Which might lead to a net increase in "Value", as happens when human societies develop in a productive way?
In most of what they've shown so far, Google seems to act like THAT. Not altruistic. But the result is net positive in a number of ways. And I like it - it's refreshing to see profits accrue to a company, that in my mind, is doing capitalism-in-modern-society correctly.
-
**: I agree that "capitalism at all costs, consequences-be-damned" is bad. And that not all societal costs and benefits are measured by a financial bottom line.
How does another deep pocket company joining a bidding war going to be good for consumers? Ultimately this will just drive the price of the spectrum up- the cost of which will ultimately need to be passed on to someone.. (perhaps the consumer?) This does nothing to help the consumer, it only gives google more leverage.
It blows me away that a taxi driver in the Dominican Republic can afford a cell phone while hauling in $10 per day whereas a business user up here pays around that amount DAILY to simply use their phone.
*** Don't be dull.***
Why does everyone insist on using it. It means that you do not require wires to use it. A 700mHz wireless spectrum might just as well be that high pitched sound when you discover there's no beer left in the fridge.
Google has some of the top engineers in the country. I suspect they know a thing or two about what they're doing.
All comments are properties and trademarks of the voices in my head. Not like I'm gonna claim them.
I'm looking forward to Google getting this chunk of spectrum. Google search is based upon pigeonrank. I happen to keep and race homing pigeons. Now, if Google opens the spectrum, I can create an app to track my homing pigeons. Beautiful!
I am from South Asia.. I have this strange feelinf that this (700MHz free phone) gonna work. I mean, it will be a hit in most of the Asia due to...
1. Asians love anything comes with free
2. Current operators (specially in my own country) aren't that cheap even the heavy telecom competition is out there.
3. Marketing is something larger than life in this part of the world. So.. Google won't run out of local advertisements.
4. Population and tech users are relatively high compared to total population.
Only problem is.... affording the Android phone. But it wouldn't be a problem after market saturation.
Doesn't a 700 Mhz speccy make the games become unplayable? All games I own work well on a 1 Mhz ZX Spectum, 700 seems to quick.
Comment removed based on user account deletion
That said, buying spectrum is risky, so they had better be careful not to get carried away in this auction.
I thought google was bidding for a rare Sinclair Spectrum computer at 700Mhz...