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Google Goes Wireless


From: David Farber <dave () farber net>
Date: Thu, 3 May 2007 21:14:53 -0400



Begin forwarded message:

From: dewayne () warpspeed com (Dewayne Hendricks)
Date: May 3, 2007 5:07:30 PM EDT
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] Google Goes Wireless

[Note:  This item comes from reader Ken DiPietro.  DLH]

TECHNOLOGY May 3, 2007, 12:01AM EST
Google Goes Wireless
A coalition led by the Web search giant is scoring early wins in a tussle over $10 billion in wireless airwaves

by Olga Kharif

<http://www.businessweek.com/technology/content/may2007/ tc20070503_030284.htm>

For a company that's had an office in Washington, D.C., for less than two years, Google is wielding a surprising amount of power in the nation's capital.

Exhibit A is the influence Google is having on a closely watched government auction of $10 billion in licenses to provide wireless service. The Web search giant has hired some big guns to help it shape the rules for how the auction will be carried out, reflecting the company's growing interest in the wireless industry and the rising stakes in the battle for a crucial chunk of airwaves.

CHALLENGING THE INCUMBENTS
Three months ago, Google (GOOG) retained Richard Whitt, former head of the regulatory department for MCI, the telco formerly known as WorldCom now owned by Verizon (VZ). Whitt, acting as Google's Washington telecom and media counsel, is lobbying the Federal Communications Commission on some of the biggest issues facing the wireless industry. These include ensuring certain wireless airwaves are made available for free public use and making sure the auction is carried out in such a way that up-and-comers get a shot at entering the market.

Google's agenda is clear. As a provider of a host of Internet services, including search, e-mail, and online video through YouTube (NWS), Google wants to ensure its content can flow unimpeded and untaxed over the world's broadband networks. One way to do that is by making sure there's plenty of competition in the market for high- speed Internet access—in particular, from providers other than behemoths like AT&T (T) and Comcast (CMCSA). "Google's key interest here is in seeing fourth and fifth [broadband access] pipes to the home to compete with cable and telecom companies," says Whitt.

The company believes that U.S. wireless service, home broadband, and TV carriers wield too much power in determining what content and services are made available to subscribers, and "[this auction] holds the key to creating [more] competition," Whitt says. "There're potentially lots of folks who could come in."

AUCTION GROUND RULES
Then there are Google's own wireless designs. It's working with EarthLink (ELNK) to provide a free Wi-Fi wireless broadband network in San Francisco, and it's trying to spread its mobile search application far and wide. Plus, according to reports, Google is developing its own wireless handset.

All of which could explain why, on Mar. 6, Google became part of a consortium called the Coalition for 4G in America. It includes eBay's (EBAY) Skype Web-calling service, Web portal Yahoo! (YHOO), satellite TV companies DirecTV (DTV) and EchoStar (DISH), chipmaker Intel (INTC), and wireless services provider Access Spectrum.

The coalition has already fired off two letters to the FCC in hopes of shaping the airwaves auction. It wants the inclusion of policies like packaged bidding, which would let bidders acquire licenses nationwide in one fell swoop instead of on a market-by-market basis. The coalition, widely considered Google-led, also wants the FCC to offer wide swaths of spectrum, allowing for superfast wireless services.

[snip]

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