Google Ready to Bid on 700 MHz 142
Seppanen Style writes "The 700MHz spectrum auction looks like it's going to be heated. Google CEO Eric Schmidt has all but confirmed that Google will make a play for the spectrum that will be on offer next January. 'In effect, this could give Google control of the entire pipe between customers and Google servers, a move that could be very good for business strategy, even if the wireless network is not a major profit center. Companies never like to be at the mercy of other companies, and Google is no exception.'"
700 MHz? (Score:5, Funny)
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Great, maybe we will see some money this auction. (Score:2, Interesting)
What you mean we Kemosabe? (Score:5, Interesting)
Not that I want an Democratic administration to have the money either.
Hmm... don't Australians have topless beach, beer, grilled shrimp and beer?
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For most people, I don't think choosing political affiliation is a rational decision.I think it's usually a mix of tribal instinct and identity at work. So people vote the way their parents did, because they'd been brought up to believe that anything else was morally wrong. Or you get the ones who vote against what their parents vote out of adolescent rebellion. You get people who'
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Hmm... don't Australians have topless beach, beer, grilled shrimp and beer?
It's not against the law to go topless*, but that doesn't mean the chicks here do it too often (apart from breastfeeding). Beaches, we have lots of. Grilled shrimp, if that's your thing. Beer? Yeah, mate, we got beer. :)
;).
* Source: wiki. [wikipedia.org] For heavens' sake, they're only breasts anyway. See them on a regular basis and they aren't any more fun to look at than anywhere else on the female body (ie. still awesome but it's possible to look away
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Does anyone know? (Score:2)
Re:Does anyone know 2? (Score:2)
Private spectrum is not really any different to any other kinds of lock-in.
Re:Does anyone know 2? (Score:5, Interesting)
From the Summary
Re:Does anyone know? (Score:5, Interesting)
I've been thinking about this, and I don't think they need to convince anyone.
I mean, yes, I'd expect them to use the wireless spectrum to give them a "last mile" connection to all that dark fiber they've been buying up. But I think they'll also hook it up to the conventional Internet, and keep it truly network neutral. Once that's in place, AT&T can packet shape youTube all they want; all that will happen is that the best route will be via Google's fiber and AT&T will lose money because they won't be peering so much data.
If Google do this right, AT&T will have to stay network neutral just to stay in the game. It'll be typical Google; altruistic on the surface, with a business strategy behind it. It's going to be interesting to see how this issue develops :)
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Offtoic, sure... (Score:5, Insightful)
Kudos to them, I say.
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Topic On...
with the amount of change amount to be thrown around for this spectrum, what I'm really wondering is the complete package to deployed over it. No one, to my knowledge, has yet to say what their plans, all-inclusive are.
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billions and billions of dollars (Score:2, Interesting)
Google has many multiple billions in cash, and can always raise more.
vs.
The entire sucky telecom industry.
Not only that, but Google ace is open-standards.
May the best bidder win, and I hope it is open standards.
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May GOOGLE win it. Even if they do absolutely nothing with it and just sit around using the paperwork as toliet paper, it's a fair cry better than letting the rapidly reforming Mother Bell have a hand over it.
Stuff like this makes me want to break out the Christmas fund and invest in Google
Looks like it's going to be heated (Score:5, Funny)
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Google wireless (Score:5, Insightful)
$29.95/mo 3G wireless internet w/ basic voice plan.
Free text. because paying for text when it costs the telco so little needs to stop.
Bluetooth data access that actually works.
If they can achieve that (by 2009, not too hard), the phone system is done.
Only problem? the cell towers.
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Once they have regulatory backing, cell towers are no biggie. Modern honeycomb towers are fairly inexpensive to build, and are also fairly unobtrusive -- all Google needs to do is lease a few million rooftops, which shouldn't be too difficult (especially if they throw in free access as a park).
The hard part will be rural coverage.
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If they build the container datacenters at the cross-connects of the dark fibre they own, as has been rumored, put the rural tower on that.
Done.
Google should hire us.
Leasing rooftops is hard (Score:5, Interesting)
In my neighborhood, the Metricom wireless network of yore (fairly cheap flat-rate 50 - 100k service, ubiquitous in the SF Bay Area in the 90s) was not available in my town, because the NIMBYs wouldn't allow it. Lot's of other towns with the same bad attitude as mine.
"Are you radio transmissions going to give my babies cancer?"
"I dunno - now, how many packs a day do they smoke?"
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You can buy a wireless router right now and put in on your roof and give all your neighbors free Wifi. Realistically, there is little chance of your ISP finding out, if it happens that it's a violation of your TOS.
But Google is a for profit company, so the minute you start getting checks, free access, or some other kind of compensation the "authorities" from the IRS on down to your local dogcatcher wi
Actually, it will be VERY difficult (Score:4, Interesting)
Anti-trust (Score:2)
Re:Actually, it will be VERY difficult (Score:4, Interesting)
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I am not sure about the characteristics of 700MHz communications, but it might be viable for Google to team up with one of the third party tower management firms, such as American Tower [americantower.com]. These guys own over 20K towers in the US, and lease access to broadcasters of all types. Some of their towers may already be located in the geographical areas that would be of interest to Google.
I should also point out that some local governments (such as mine) have tower policies that require the owners to provide space
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Maybe....maybe not....
http://www.21stcenturyairships.com/HighAlt [21stcenturyairships.com]
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Unlimited telephone calls for $10/month.
There. I win.
What's the point of your post? Are you the God of Telecommunications, so whatever you say goes? I don't understand what you want in a phone service and the price you're willing to pay has to do with the price of tea in China.
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Shit, I pay $100 for it now!
Re:Google wireless (Score:4, Funny)
Here's what I want:
$29.95/mo unlimited telepathy+teleportation
If they can achieve that the phone system is done. So is the airline industry. Probably the education system as well.
Only problem? We have no idea how to do it.
OH! Forgot something. I'd also like a pony [i-want-a-pony.com].
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My SERO Plan:
$30/month
Unlimited data, EVDO rev. 0, rev. A when it is out. (I bought the HTC Mogul)
Unlimited text (promotion until 9/29, probably extended).
500 minutes, 7PM nights & weekends
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-500 anytime minutes
-unlimited weekend/night starting from 7
-unlimited calls to Sprint numbers
-unlimited data
-unlimited text
Google SERO and Fatwallet for details.
I Bet Google Will Lose (Score:2)
I'm very interested in hearing how others think it will play out.
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I think they have the money.
Re:I Bet Google Will Lose (Score:5, Informative)
The telecoms:
AT&T: $242 billion
Sprint: $53 billion
Deutsche Telekom (they own T-Mobile): $79 billion
Verizon: $121 billion
Versus:
Google: $160 billion
Luckily, there's more to this game than pure market caps. Google is probably better able to raise cash, and may also have more cash on hand, than the telcoms. On the other hand, though, you have companies that have been around for a long time, and are fairly good at getting what they want. Regardless, I'm looking forward to the auction. A Google win would be awesome, but the actual event should turn out interesting as well.
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But it's not that whoever has the biggest market cap wins... it's that whoever has sufficient money to bid may win. All of the named players seem likely to have sufficient money.
Beyond that, Google's market cap is significantly less diluted than that of the others, IIRC. Which would mean they'd have an easier time reallocating that money.
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Of course, by the same token, all the last-milers [wikipedia.org] could see this as a major threat to their monopolies and also band together.
Google will win (Score:5, Interesting)
They can go in and undercut everyone to bring some sanity to the cellphone market.
Paying to text is absurd. Paying to send email is absurd.
They will probably come in with some kind of deal where you pay for voice and everything else is free. Given their infrastructure, they can probably pull that off.
If they go GSM with some advanced, high-speed data underneath. They will win, big time.
Get the google quint-band phone with GSM (700Mhz, 850 MHz, 900Mhz, 1.8Ghz, 1.9Ghz), bluetooth, cameraphone with automatic youtube and picasa updates. Total market ownage.
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Get the google quint-band iphone with GSM (700Mhz, 850 MHz, 900Mhz, 1.8Ghz, 1.9Ghz), bluetooth, cameraphone with automatic youtube and picasa updates.
Eric Schmidt is on Apple's board of directors after all.
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I pray Google will lose (Score:2)
For all their foibles, the telcos are regulated, at least in some sense of the word -- either by laws or by competition. Google doesn't like laws or competition. They'd love to acquire another monopoly they can leverage.
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Google isn't worried about competition, they're worried about being locked out.
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Let's put a note on our calendars to touch base in one year and see how it plays out.
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Seems sensible (Score:5, Interesting)
It seems reasonable to assume they would make a bid, even without the four openness rules - after all, if they win they can make their own openness rules, and if they don't win, it costs them nothing.
Market cap... (Score:4, Informative)
It's not a problem for them.
Re:Market cap of competitors? (Score:2)
Estimates? (Score:3, Insightful)
For the lazy (Score:2, Informative)
Where parens are Market Cap, Cash/Debt.
Looks like if these are the number we're looking at, Google is way ahead. But IANAFG, so I haven't the foggiest whether any of these matter or not.
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With all the money sloshing around the system right now looking for a relatively safe investment, I would think Google's financing options are as close to unlimited as any company in the world. Loans, bonds, silent hedge fund partners, keeping a majority in a spin-off company. All seem doable for a premier tech company with smart people and a solid business plan.
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Eple (Score:2)
(Phone rings) "Hello?"
"Yeah it's me... I wanna give you some good frequencies; 1710, 2.6, 2245..."
"Yeah"
"3032, 700"
(Surprised) "Seven hundred?!"
"Yeah."
"I'm coming right over."
"Do that."
"I'll be there in two seconds"
(Later)
"You bastard! You sold me 700 Terahertz!"
"That'll teach you to be more careful with your units next time."
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Yeah, but then they own the color purple. Take that, Alice Walker.
The real question... (Score:2)
Bargaining position? (Score:5, Insightful)
The telcos have something that Google wants: unfettered and maybe even exclusive access to their users. Telcos however are notorious for their habit of restricting their devices' access to services that net them more profit. Google knows that and knows that wireless devices may be tomorrow's prime mean of accessing the Internet. If this were to happen, search and content providers would have to strike very onerous deals with telcos in order to maintain access to their clientele.
As a result, the FCC's decision not to require open access to the Internet for users of the 700Mhz spectrum threatens to put Google's future in the hands of the telcos.
The menace to enter the telcos' market strenghtens Google's barganing position because
a) Google has the money to make good on that threat and may chose to do so as a defensive measure
b) the telcos need that spectrum a lot more than Google does.
I wouldn't be surprised to hear in the coming months that Google has struck many major long term deals with several telcos and has finally decided to bow out of the auction.
Re:Bargaining position? (Score:5, Insightful)
In the end, they'll just have to put out a device on the standard.
Now, they definitely could use that spectrum to actually create a last mile connection network. As they are rumored to already own a bunch of dark fiber, they would have a top to bottom network infrastructure. Enough to scare the telcos. Maybe Google will enter that market to ensure a free (as in unrestricted) connection to their customers. Maybe they'll just stick to online service and enter devices on a free network. The uncertainty will push the telcos to bid higher and they certainly don't have as much cash laying around as Google does...
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At this rate, "free" will have about the same semantic content as "good".
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First, Google didn't get from the FCC what they really wanted: unfettered Internet access for the users of that Spectrum (see condition 3 of their open letter [google.com] which
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I just signed up for a Verizon plan, which came with a free month of the premium services. Also known as: Web access, expensive video downloads and shitty resolutions, and actual use of the GPS which is there anyway.
I've actually tried the web access, but quickly decided that the only reason I would use it is if I'm nowhere near a computer and feel like checking my email. In other words, wasting idle time. In fact the web experience has been so dismal that the only web pages I've visited
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I did have to call tech support to get the
developer password for my phone... then a simple
install of mgmaps from www.mgmaps.com and it
Just Worked...
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The terms they came up with were designed to mitigate that risk. I suspect that their promise to bid several bllions was just to get everybody's attention.
Also would be good for the internet, and freedom (Score:2)
Mercy of other companies? (Score:2)
In my experience companies are perfectly happy to be at the mercy of other companies. It's hardly unknown for a company to source software products from a single company, for example, with no easy migration path to any other product.
Perhaps Google is the exception after all.
$28 Billion or thereabouts.... (Score:1)
It translates into roughly $280 per household, which translates into $23.33/month. Currently the exclusive iPhone/AT&T packages run $50+ per month.
Quick ROI even at $28 Billion, methinks.
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So I can see that they would cover the cost of the frequency with your numbers. The bulk of the infrastructure investment could come from licenses to cell manufacturers, customers, and advertisers and pay off the
How will they make money? (Score:2)
I forsee one day... a
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GTel (Score:2)
Go For It, Google (Score:2)
Google or AT&T... hmm, lemme think. (Score:2)
But name the lawsuit that Google has for illegally wiretapping US citizens and giving control to the NSA.
And name the shifty business practice Google has for overpriced services, fees for EVERYTHING (including disconnecting certain services), and...oh wait, what was that again? Secret wholesale of Teir 1 backbones.
And name one horribly bad thing that Google has done in the name of user privacy. Name their practices with security, openness, and usability. Humor me by saying they charg
advertising (Score:4, Funny)
Phone Rings
Husband: Hey honey, What do want for dinner tonight?
Wife: How about some chicken?
Husband: That sounds good, how about some popeyes?
Wife: That sounds good, or we could ...
recording interrupting....
Recording: (uber-cheerfully) I hear you're looking for chicken in your area.... I'd just like to let you know that there's a KFC on The corner of Campbell and Howard. There is also a popeyes on the corner of vero beach and tracy, a KFC on the corner of
Husband: Shut up!!! I know where the chicken places are, I live here.
Recording: juno and tibedeau and there's a popeyes at 945 Main
Wife: just let it finish.
Recording: Street and there's a Publix at 177 center street.
husband: Damn Google and this cheap phone service. I can't even have a conversation anymore.
Recording: I heard google, Would you like to look something up? Perhaps how to buy 'conversations' on E-bay?
This is "google", not "X-10". (Score:2)
bittorent (Score:3, Interesting)
will the "do no evil" moto have to change then?
Yay Google. (Score:2)
Personally I'd like to see it default to amateur radio.
I, For one, welcome our new Googly overlords (Score:2)
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Most of their shareholders support GWB, and his policies benefit the Filthy Wealthy such as Brin and Page. Why would they fund his removal? It's an interesting commentary on the "good" and "evil" thing to consider who, Google (Brin and Page) or Microsoft (Gates et all) have given the most to organizations that benifit the public good? Hmmm...
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Most of their shareholders support GWB
Not really (Score:5, Interesting)
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Do SOME good, and people like you complain (Score:5, Insightful)
Hey, better yet, why don't they convince the UN to send peacekeepers to Darfur? Why don't they fund alternative energy research? I'm sure they have enough money to get a fusion research lab up and running. Why don't they fight cancer?
The problem is even if they did set up a lab to do research with the intent of "fighting cancer", some asshole like you would complain they're not fighting AIDS.
Anyone who wants to fight to do good in this world only has limited resources to work with, as such, one must pick their battles. Taking on the crooked telco companies is worthy enough for me.
Re:Do SOME good, and people like you complain (Score:4, Interesting)
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I disagree, slightly.. (Score:4, Interesting)
But the dark fibre...
Yes, no doubt, perhaps used to connect wireless broadcasting centers to each other, but also, my speculation is that it's going to be used for television. Google is an advertising company. For the forseeable future, there is no bigger advertising medium than Television. True, the major networks upfronts were lower this year than in the past, but that's only because the rise of original content on cable networks has created more premium content for advertisers to buy into.
Google is going to need massive bandwidth to build a next-gen network for TV advertising. Perhaps even one day using the Overlay technology it's deploying on YouTube. Time shifting is here to stay. Advertising is here to stay. I suspect the latter will adapt to the former, and overlays seem a pretty likely candidate.
Who has the technology, bandwidth, ad sales teams, and capital to make it all work?
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I think "Chaotic Neutral Empire" might be more fitting at this point.
Much more than that (Score:5, Interesting)
Buying up the 700MHz band will make them, in the US, own the "Where Joe is coming from". A mountain of dark fiber they've been purchasing lately will supply the infrastructure to connect side A to side B.
Together, these are worth more than the sum of their parts. Coupled, rather than Google wanting to hookup to tier-1 ISP's, it will be tier-1 ISP's who will be jumping through hoops to get closer to the wirelessgoogle plate.
They seem to be using the momentum of their products to try and catch a rather big chunk of the internet backbone and haul it right up onto their own back (just the bit that involves peoples traffic going to them). Quite admirable in its own right, if they manage to pull it off.
Rather than bean-counting and looking for a direct profit, a move like that would reposition them in an entirely different league of players, give them way more power, regulation leverage and later translate into an insanely bigger profits.
I'm eager to see if they manage to pull this off, if for the sheer ability to outsmart all of the established competition for that power. And frankly, even without them being holier than the bloody pope, I'd much rather have them have it than any other player their size.