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Google recently expressed its willingness to invest in the Federal Communications Commission's upcoming wireless spectrum 700MHz band auction and the company says it will pay the minimum reserve of $4.6 billion.
But there's a catch. Google wants the FCC to adopt its licensing recommendations -- open applications for users, open devices that will work with whichever network provider customers choose, open services for third-party resellers and open networks -- regardless of who ultimately wins the bidding process.
The internet was abuzz over the weekend following Google's official interest in the wireless spectrum, with many concluding that Google wants to take on the cellphone companies.
At the very minimum, should the FCC adopt Google recommended licensing your mobile device may soon be more like your TV or computer. The device itself would be fully independent of any network access provider -- just as Apple and Dell don't dictate what ISP you choose, cell network companies would no longer be able to tie you down.
The biggest implication though lies in software. As it stands, if you want to download software on most phones, you're limited to offerings of that network provider. Under Google's plan, AT&T could not, for instance, stop you from downloading a version of Google desktop designed for your phone. And say goodbye to those exclusive YouTube partnerships.
As the New York TImes [reports][1]:
>When you go to Best Buy to buy a TV, they don't ask whether you have cable or satellite," said Blair Levin, a former F.C.C. official who is now an analyst at Stifel Nicolaus & Company. "When you buy a computer, they don't ask what kind of Internet service you have, and the computer can run any application or service. That doesn't exist in the wireless world. That's where Google wants to go with this auction."
As anyone paying attention knows, the telecommunications companies more or less hate Google and with full leased ownership of the 700MHz spectrum, Google is suddenly in a position to effectively cripple the industry. The telecoms' response to Google's announcement was a series of scathing critiques, with Verizon going so far as to call Google's proposal "corporate welfare."
The announcement has also provided a bit of fire for the long-standing rumors of a Google Phone, but we still think that's unlikely. Why would Google suddenly get into the hardware business when its core income comes from advertising piggy-backed onto free software service?
In other words why have a Google Phone when an open network with open devices can turn every phone into a Google phone?
Of course I never believed in the iPhone until it was announced, so clearly I could be wrong. Be sure to let us know what you think in the comments.
[1]: http://www.nytimes.com/2007/07/21/technology/21google.html?ex=1342670400&en=2a8a51ec5cb4daf2&ei=5090&partner=rssuserland&emc=rss
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