Google Bids For Wireless Internet Service
Posted July 20, 2007 12:00 pm.
This article is more than 5 years old.
Google is taking a hard run at the internet service market, and it’s going wireless. The media monster announced plans on Friday to bid at least $4.6 billion on wireless airways being auctioned off by the US government, but only if certain conditions are met.
The online search giant wants the US Federal Communications Commission to mandate that any winners, whether they’re Google or another company, to lease a certain portion of the airwaves to other companies.
This will give consumers a third option for internet service outside of traditional phone line and cable access, argues Google.
In a letter to FCC chairman Kevin Martin, who just last week previewed draft rules for the auction that did not include this provision, Google CEO Eric Schmidt said the current proposal falls short of what Google and consumers want.
“In short, when Americans can use the software and handsets of their choice, over open and competitive networks, they win,” wrote Schmidt.
This is at odds with what the other major telecoms want. AT&T and Verizon plan to bid on the current auction draft. AT&T’s senior executive vice-president for external and legislative affairs Jim Cicconi says Google now has to ‘put up or shut up’.
“If they are serious, they will be able to bid and test their model in the marketplace against the business models of companies already enjoying widespread consumer acceptance,” says Cicconi.
But the current draft proposal does contain a rule on open access that seems to be amicable to all potential bidders. Open network access would allow consumers to buy the wireless device and software of their choice and use it on the new network.
The auction, which must take place before Jan. 28, 2008 , could raise as much as $20 billion for the U.S. Treasury.
