According the Friday’s Wall Street Journal, Google broadcasted they will make a bid for a 700 MHz wireless spectrum at a Federal Communications Commission auction. To simplify the wireless spectrum being auctioned, the 700 MHz frequency is what is used to carry signal to those old “rabbit ears” television sets. The auction price is estimated to reach $4.6 billion. Other members participating in this auction are most likely going to be the major wireless carriers, Verizon, AT&T and Vodafone. Winning the bid for a wireless license will provide Google a chance to become the newest member in the market of mobile phones and Internet services.
According to an article released by CNet News, Google wants the FCC to agree to its four "open" platform recommendations, which include: open applications for users; open devices that will work with whichever network provider customers choose; open services that would allow for third-party resellers to acquire wireless services on a wholesale basis; and open networks, which would allow third parties, such as Internet service providers, to interconnect at any feasible point within the 700MHz licensee's wireless network. If Google indeed wins the auction, the purchase of the 700MHz wireless spectrum will provide cell phone users access to an “open” platform. This means that cell phone users would be free to choose their service provider and still have access to the wireless spectrum. With a large player such as Google jumping into the mobile provider industry, they will definitely stir up the competition. Increasing competition and easier access to wireless services could create a major overhaul to how mobile providers price their phone and data plans.
On a side note: Resulting from the sale of the wireless spectrum on February 17, 2009, the FCC has mandated that all television channels must be cleared from the “over-the-air” analog spectrum and switched to a digital signal.
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