Google and the 700Mhz Spectrum
Last week's turn of events is one for the history books when Google announced in their official blog that they are committed to "putting consumers' interests first, and putting [their] money where [their] principles are -- to the tune of $4.6 billion". According to a letter sent by Google to FCC's Chairman, Kevin Martin.
What is the 700 Mhz spectrum?
The 700Mhz spectrum is the frequency that current analog TV providers use to broadcast their programming. Since Congress mandated a "forced-migration" in 2009 of the American TV broadcast system to digital, the said spectrum will be freed up, hence FCC's auction.
Why is the spectrum that important?
The answer is basic radio physics. At 700Mhz, an operator can cover at least 4 times more area for the same transmission power as a 1900 Mhz cell phone tower. The 700 Mhz spectrum has also this uncanny ability to travel well on all types of terrain and penetrate walls and buildings which is why it was a good choice for TV signals in the first place.
This is where Google comes in. Google is urging the FCC to adopt 4 key points to be mandated to whoever wins the auction.
-Open applications: consumers should be able to download and utilize any software applications, content, or services they desire;
-Open devices: consumers should be able to utilize their handheld communications device with whatever wireless network they prefer;
-Open services: third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
-Open networks: third parties (like Internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee's wireless network.
If all 4 points are to be enforced to whoever wins the auction, Google is willing to bid at least $4.6B for the spectrum.
Imagine a world where wireless internet access is as ubiquitous as getting a TV reception. A place where you can turn on a device (doesn't necessarily have to be your laptop) and make VOIP phone calls to anyone in the world, surf the net, run video conferences. Tie that up with GPS functionality and you'll end up with a geek gadget unlike any other. The 700 Mhz spectrum will end up as the "third pipe" to the internet world, and with that kind of access, it will compete with the 2 other major broadband providers -- Cable and DSL.
Ok, I'm excited what's the holdup?
Well, first of all, the spectrum won't be free at the earliest in February 2009 when analog TV broadcasts migrate to digital-- so don't expect a gPhone anytime soon. Secondly, there are parties who oppose the current proposals for an open wireless network. Namely, the 800 and 700lb gorillas of the wireless world, AT&T and Verizon, who owns several other spectrums for their wireless services. Uniting with them is Comcast, which is the 800lb gorilla of the cable industry. Ubiquitous convergent wireless service (wireless, phone, internet, all in one) is a big threat to their business model as well as their billion dollar infrastructure that can virtually turn obsolete overnight.
But Google is not without its own share of "allies" in this war for this prime commodity. The WhiteSpace Coaltion, a group of 8 tech companies (Microsoft, Google, Dell, HP, Intel, Philips, Earthlink, and Samsung) was formed that has one goal: to deliver wireless broadband by using the analog frequencies that will be freed up by the 2009 migration.
Money Talks
In the middle of it all are 2 congressmen, Fred Upton (R-Mich.) and Joe Barton (R-Tex.) who are oppossed to an "open network" for the spectrum. They have this to say.
Now, a quick Google (no pun intended) in to those 2 congressmen's campaign contributors, comes up with:
Barton: Comcast (#1), Verizon (#10), AT&T (#14), Sprint Nextel (#15)
Upton: AT&T (#2), Verizon (#3), Nat'l Cable & Telecommunications Association (#6), Comcast and Qwest (#7) and Sprint Nextel (#19)
As with anything else in America, follow the money and you will get to the truth.
Speculating Google's next move
Over the course of 7 years, Google acquired 45 businesses and a lot of analysts are speculating that Google is just on a buying spree with no particular direction in mind. I say, they have a clear cut strategy for all their acquisitions. Google pretty much has a monopoly on internet activity, they know how many search hits a company gets, how many feed hits, how well their online ads are doing, even how many site hits the target receives if it is using Google Analytics. Not to mention, Google's page ranks more or less defines how well a web based business is doing -- and that's where they put their money. Here are a couple of Google's acquisitions that may or may not be relevant to their bid for the 700Mhz spectrum:
Acquired in 7/7/2005: Reqwireless, a company who made a Java ME Browser
Acquired in 7/7/2005: Current Communications Group, a company who is developing broadband over power line (BPL)
Acquired in 8/17/2005: Android, a company developing software and operating systems for mobile phones
Acquired in 4/2007: Marratech, a video conferencing company.
Acquired in 7/2/2007: Grand Central Communications, a company that provides services for Managing Voice Communications.
Not to mention all the dark fiber that Google owns.
My take
Fighting innovation is like fighting an uphill battle on roller skates. We currently have a golden opportunity knocking and all we have to do is open the door and let the innovators compete on an open and level platform. The telecom and cable industries have stagnated and rested on their government-mandated-monopoly laurels for far too long, it's time to bring in fresh new blood in to the industry. Overall, the 700 Mhz spectrum is the People's (with a capital P) property and the FCC should act and for People's benefit.
What is the 700 Mhz spectrum?
The 700Mhz spectrum is the frequency that current analog TV providers use to broadcast their programming. Since Congress mandated a "forced-migration" in 2009 of the American TV broadcast system to digital, the said spectrum will be freed up, hence FCC's auction.
Why is the spectrum that important?
The answer is basic radio physics. At 700Mhz, an operator can cover at least 4 times more area for the same transmission power as a 1900 Mhz cell phone tower. The 700 Mhz spectrum has also this uncanny ability to travel well on all types of terrain and penetrate walls and buildings which is why it was a good choice for TV signals in the first place.
This is where Google comes in. Google is urging the FCC to adopt 4 key points to be mandated to whoever wins the auction.
-Open applications: consumers should be able to download and utilize any software applications, content, or services they desire;
-Open devices: consumers should be able to utilize their handheld communications device with whatever wireless network they prefer;
-Open services: third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
-Open networks: third parties (like Internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee's wireless network.
If all 4 points are to be enforced to whoever wins the auction, Google is willing to bid at least $4.6B for the spectrum.
Imagine a world where wireless internet access is as ubiquitous as getting a TV reception. A place where you can turn on a device (doesn't necessarily have to be your laptop) and make VOIP phone calls to anyone in the world, surf the net, run video conferences. Tie that up with GPS functionality and you'll end up with a geek gadget unlike any other. The 700 Mhz spectrum will end up as the "third pipe" to the internet world, and with that kind of access, it will compete with the 2 other major broadband providers -- Cable and DSL.
Ok, I'm excited what's the holdup?
Well, first of all, the spectrum won't be free at the earliest in February 2009 when analog TV broadcasts migrate to digital-- so don't expect a gPhone anytime soon. Secondly, there are parties who oppose the current proposals for an open wireless network. Namely, the 800 and 700lb gorillas of the wireless world, AT&T and Verizon, who owns several other spectrums for their wireless services. Uniting with them is Comcast, which is the 800lb gorilla of the cable industry. Ubiquitous convergent wireless service (wireless, phone, internet, all in one) is a big threat to their business model as well as their billion dollar infrastructure that can virtually turn obsolete overnight.
But Google is not without its own share of "allies" in this war for this prime commodity. The WhiteSpace Coaltion, a group of 8 tech companies (Microsoft, Google, Dell, HP, Intel, Philips, Earthlink, and Samsung) was formed that has one goal: to deliver wireless broadband by using the analog frequencies that will be freed up by the 2009 migration.
Money Talks
In the middle of it all are 2 congressmen, Fred Upton (R-Mich.) and Joe Barton (R-Tex.) who are oppossed to an "open network" for the spectrum. They have this to say.
"I think the fewer fetters you have in terms of conditions on the auction, the more open the process and the better its going to be," (Barton) said. "I also think you're going to get more money if you do it that way."
"The free market works best. If Google is really right that there is market demand for their model, they should be lining up to bid in a fair auction, without these requirements," Upton said.
Now, a quick Google (no pun intended) in to those 2 congressmen's campaign contributors, comes up with:
Barton: Comcast (#1), Verizon (#10), AT&T (#14), Sprint Nextel (#15)
Upton: AT&T (#2), Verizon (#3), Nat'l Cable & Telecommunications Association (#6), Comcast and Qwest (#7) and Sprint Nextel (#19)
As with anything else in America, follow the money and you will get to the truth.
Speculating Google's next move
Over the course of 7 years, Google acquired 45 businesses and a lot of analysts are speculating that Google is just on a buying spree with no particular direction in mind. I say, they have a clear cut strategy for all their acquisitions. Google pretty much has a monopoly on internet activity, they know how many search hits a company gets, how many feed hits, how well their online ads are doing, even how many site hits the target receives if it is using Google Analytics. Not to mention, Google's page ranks more or less defines how well a web based business is doing -- and that's where they put their money. Here are a couple of Google's acquisitions that may or may not be relevant to their bid for the 700Mhz spectrum:
Acquired in 7/7/2005: Reqwireless, a company who made a Java ME Browser
Acquired in 7/7/2005: Current Communications Group, a company who is developing broadband over power line (BPL)
Acquired in 8/17/2005: Android, a company developing software and operating systems for mobile phones
Acquired in 4/2007: Marratech, a video conferencing company.
Acquired in 7/2/2007: Grand Central Communications, a company that provides services for Managing Voice Communications.
Not to mention all the dark fiber that Google owns.
My take
Fighting innovation is like fighting an uphill battle on roller skates. We currently have a golden opportunity knocking and all we have to do is open the door and let the innovators compete on an open and level platform. The telecom and cable industries have stagnated and rested on their government-mandated-monopoly laurels for far too long, it's time to bring in fresh new blood in to the industry. Overall, the 700 Mhz spectrum is the People's (with a capital P) property and the FCC should act and for People's benefit.
posted by BigD at
3:25 PM
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