Case Analysis 4: Google’s Attempt to but Into Wireless Via 700mhz Spectrum Auction
Case Analysis 4: Google’s Attempt to but Into Wireless Via 700mhz Spectrum AuctionCase Analysis 4: Google’s attempt to but into wireless via 700MHz Spectrum Auction
Why did Google make this move? What do they hope to accomplish?
Google made this move because they wan to compete with the other companies and become innovated. Google has most been known for their website and maps and now, they want to be known for more. “Google interest in the spectrum came after AT&T and other larger broadband providers expressed interest in recent years in getting web-based businesses to pay more for their customers’ use of the broadband networks.”(http://www.cio.com/article/160601/Google_to_Bid_in_700MHz_Spectrum_Auction) Google wanted control of the Internet experience on the device that hosted it. If they got the wireless spectrum, they could control how much the consumer would decide to pay or not pay for their service. However, since they put a bid in for the wireless spectrum, they wanted to do the same thing on their network. The 700MHz spectrum will travel far making it perfect for the wireless industry.
How does Google support for Open Access fit into Google’s plans?
“Google has said it would bid on the 700MHz spectrum only if the FCC guarantees certain open-access principles; including open access for companies wanting to buy wireless capacity wholesale.” (http://news.cnet.com/Googles-battle-for-wireless-spectrum---page-2/2008-1039_3-6199374-2.html) Open Access for the 700MHz spectrum can be lay down “four freedom”
1.) Open applications: The same freedoms found on the Internet to download software, content, or services
2.) Open devices: Devices must access any network consumers want.
3.) Open services: Fairness in wholesaling use of the spectrum to third parties
4.) Open networks: Internet-type rules for connecting networks together.
All this idealism has a practical political point. Google aims to break the cellular oligopoly that has slowed the U.S. wireless industry throughout this decade....