Is Google Gearing Up To Take The Airwaves?
That’s what BusinessWeek concludes in a detailed article that recounts Google’s recent efforts to influence the outcome of the U.S. government auction of $10 billion in licenses to provide wireless services. The rules won’t be announced until June, but Google’s lobbying activities and its March move to join the Coalition for 4G in America (a consortium that joins Skype, Yahoo, satellite TV provider DirecTV, EchoStar, Intel and wireless services provider Access Spectrum) are bearing fruit. The coalition β which is widely considered to be dominated by Google β has petitioned the FCC asking for policy changes in the airwaves auction. If it has its way the auction will allow packaged bidding, a policy change that would let bidders acquire nationwide licenses.
At first glance it seems Google’s agenda is about shaking up the market to make room for all companies - not just the usual suspects (AT&T and Comcast, for example) βto compete for a license. This would pay off for Google since more competition would benefit its efforts to deliver its content “unimpeded and untaxed” over the networks, BW notes. “One way to do this is to make sure there are plenty of companies offering access.”
But there are other motives that are less about Google championing increased competition and more about the search giant’s ambition to extend its reach into wireless. This is hardly far-fetched since Google already offers free Wi-Fi in San Francisco thanks to a partnership with Earthlink. There are also indications that Google may bid in the 700 MHz auction, either on its own or together with Earthlink. BW quotes Richard Whitt, Google’s Washington telecom and media counsel, as saying: “We’ll certainly look at other wireless opportunities out there.” Add to that rumors that Google is developing a Google phone β and one can imagine where this is going.
If Google does indeed go wireless, then it will control two key touch points to mobile content and apps: the network and the mobile search engine. It also will be in a prime position to dictate the mobile advertising ecosystem from end to end and not have to bother with pesky mobile operators and third-party players that demand their share of the ad revenue pie. The jury is on whether this is the plan. But if anyone can pull this off, Google can.
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Comments (2)
May 11, 2007 6:43 AM
Is there any clarity on why is a satellite TV service provider like Echostar is interested in pursuing the 700MHz auction? what would be their vested interest in this?
May 22, 2007 7:36 AM
Bharath, I think you should check out Rafat’s post today - just read between the lines of Google’s well-meaning suggestions for a new auction model…