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Apple and Google Are Telecom's Newest Stars
In looking back at 2007, CNet views the smash entrance of Google and Apple onto the telecom stage as a major formative factor for 2008's tech scene. Google in particular is going to be a huge factor in the much-anticipated wireless auction. "Google was instrumental in getting the FCC to adopt auction rules that would ultimately give consumers more choice in the devices they use on these new networks. And in November, Google CEO Eric Schmidt committed the company to bidding in the auction, promising to spend at least $4.6 billion on licenses. Exactly what Google plans to do with the spectrum if it wins licenses is still unknown. But its participation raises the stakes, especially for traditional telephony players."
While it's unclear what it is that Google would like to do with the spectrum, what IS clear, is that it's likely to be advantageous to the consumer. Why, you ask? Because under the current system, a state-sanctioned oligopoly of companies have instituted a system of high prices and low quality of service, that is probably unsurpassed in any other industrialized nation. They have built their closed networks taxpayer subsidies, and are now in a position where they have repeatedly refused to upgrade their infrastructure or invest in any real upgrades, and would rather sit on their pile of gold and slowly reduce the quality of service as their customer base and demands expand. It's short-sighted, and harmful to virtually everyone. Entry of a new player will give the market a long-needed shakeup.
google is going to attack the telecom industry much like it has successfully wrestled away power from all the other sectors it has targetted. and it will probably use the same strategy.
internet search used to be dominated by yahoo, microsoft and aol. google stepped in to offer a better, faster, simpler and cleaner solution.
email used to be dominated by yahoo and hotmail. google stepped in to offer massive amounts of storage space, aesthetics and ease-of-use.
access to global imaging was essentially non-existant for the typical person. google stepped in and brought google maps/earth with street level routing and images, and made it fun.
google's latest release in the mobile operating system market displays their plan to undermine Microsoft's existing Windows Mobile while MS sits on its butt not innovating. Sun/Java's new mobile platform has had no advertising, and the rest of the market is too busy competing between nokia/symbian, ericsson and the rest (i.e. motorola, etc). google's strategy, once again, involves bringing a new, better product to market and providing massive incentives to use it (in this case, being free and open).
their plans for the wireless spectrum can't be much different. a fiber backbone with wireless internet cloaking major cities, additional infrastructure for their mobile phone system which may eventually branch out to include massively subsidized Google-branded phones and internet devices....with the aspirations to entirely undermine the existing telecos and crappy mobile phone technology that is available in the US now.
It's a sad world when a company making its first foray into a new market, releases a product that has features already found in that market, and which more-or-less just performs the way it's supposed to, is considered a star.
However, that is the sad world we live in. The mobile handset market in the US is such a disaster that the iPhone, despite not really having any specifically killer new features, is astounding. It simply works so much better than the other products already on the market that it doesn't need new features.
Then again, that's Apple's killer app -- making things that actually work the way everyone else merely SAYS their products do.