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."
With the entrenched backbone providers in the US not wanting to go with non-biased access to their networks, Google just pulled one of the biggest bluffs in telecom history. If they do win, then they control a massive portion of the spectrum that could be used for a national network. On the other hand, if they lose, they have to rules changed to favor consumers and suddenly have been a legit threat in the wireless space. What happens when Google activates all the dark fiber they've been buying up? Suddenly, the telecom industry doesn't look so happy after all.
This is what we know about Google so far.
They..
-bought lots of dark-fiber (is it still dark?)
-have portable data centers (you can disprove this with facts all you want, but I think they got the idea from Die Hard4)
-want to buy an extremely usefull chunk of the radio spectrum (that can handle high-bandwidth data)
Looks like a game of chess to me. All pawns are in place, just waiting for the Queen.
"The price good men pay for indifference to public affairs is to be ruled by evil men." ~Plato (427-347 BC)
As much as I like Google and want them to win the 700MHz auction and open a new platform for us to develop mobile applications that are 'really' useful, I won't call them a player in the telecom scene just because they are bidding in the auction. When they win the auction and provide the infrastructure (Alone or with partners), only then will they really be a player in the telecom field. We just have to wait and watch.
If you are wondering, "why would google want to provide the internet in a different form factor?" the answer to that question is: b/c when people have access to the internet they will use google --> using google means using google ads --> using google ads means lots of money going to google.
So yes Google is being selfish in wanting to provide internet for the masses because it means more money for their coffers, BUT at the same time having internet also means that you can use the internet... and plus its not like you HAVE to use Google when you have access to the internet.