Why Is Google Making This Move

For Google, maintaining itself as a search leader as wireless Internet access grows is extremely important since this is one area with extremely high growth prospects.

The mobile phone is poised to become one of the most prevalent ways to access the Internet, analysts say, raising the stakes for Google. That’s why the company is exploring ways to get its services on all such devices and why it might undertake the risky but ambitious gambit of producing its own phone.For Google to really go mobile, it needs changes in the existing marketplace, where phone companies operate systems largely closed to unapproved devices and applications. Their basic strategic objective is to make sure the wireless Internet resembles the wired Internet, right now they are very different. Google’s vision is to have mobile-phone service offered free of monthly charges to consumers willing to put up with advertising. What Google wants to accomplish is to broker advertising on mobile phones the way it has on the Web.Wireless carriers worry that Google will muscle its way into the young market and capture their wireless advertising dollars.

HOW DOES GOOGLE’S SUPPORT FOR OPEN ACCESS FIT INTO GOOGLE’S PLANS? With the requirement to allow any device or application to operate on the spectrum, however, Google could get into the mobile market without having to actually build and operate a network. If Google is successful, however, broadcast companies will have much more flexibility in creating business models that use spectrum that used to belong to them in the first place.The irony of this is stunning. Open access provides the following flexibility: •Open applications. Consumers should be able to download software applications and content, and use services without restrictions. •Open devices. Consumers should be able to use any type of handheld communications device and not be limited to those provided by or approved by the wireless service provider.

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•Open services. Third-party resellers should be able to obtain wholesale bandwidth or wireless services from any company that wins a 700 MHz license. •Open third-party networks.Other networks should be able to interconnect at technically feasible points with a 700 MHz licensee's wireless network. IT LOOKS LIKE GOOGLE WANTS TO GET INTO WIRELESS, YET, WIRELESS IS NOT ONE OF GOOGLE’S CORE COMPETENCIES. WHAT SHOULD GOOGLE DO ABOUT THIS? Google could buy the spectrum like real estate, lease it to someone to build/run the network, and still hook its Android devices up to it. Google's priority as a public company is to make a profit; having a Google-branded wireless service would attract a good deal more eyeballs to its ad-based services.

As the leader in the open internet world, Google stands to benefit in a purely open wireless world, but so will we all. Big or small, a level field of play will mean an explosion of creativity and applications that we can’t even imagine today. Google could implement wireless Internet experiences that dramatically surpass what’s available today, including: •Phones that incorporate quality cellular browsers to enable listening and viewing to all audio and video streams •Implementing a WiFi-friendly cellular network to offload bandwidth-intensive Internet access and encourage dual 3G/WiFi phones •Putting WiFi VOIP software on all phones Offering feature-rich synchronization between handsets and the Internet for Google’s applications as well as third parties' •Providing advanced mobile commerce software for wireless Internet shopping experiences •Testing free and discounted airtime and wireless Internet services paid for with text, audio, and video advertisements •Being unique among cellular operators to leverage the Internet for educating customers through a comprehensive package of Weblogs, wikis, videos, podcasts, and email newsletters, and encouraging senior executives and consumers to interact online APPLY AS MANY TCOS AS YOU CAN TO GOOGLE’S MIGRATION TO DIGITAL.A - Given a company situation be able to describe the industry dynamics of technological innovation. Combined with its core competencies of search, applications, and advertising, Google may soon add new puzzle pieces that will help create an end-to-end mobile broadband network in the US. However, these new pieces may be mostly about expanding its core business—providing universal access to information in exchange for targeted-advertising dollars D - Given an organizational context, develop a plan to increase the innovative capabilities of the organization both through collaboration trategies and internal innovation. If Google was a winner in the 700MHz auction, I believe the company would have attempted to wholesale the spectrum, and would have collaborated with partners to ensure a strong presence in mobile broadband and drive its own advertising revenue.

E - Given information about a company’s industry, and organization, formulate a technological innovation strategy through its new product development strategy. By bidding in the auction, Google forced Verizon to shell out the cash necessary to grant open access to devices and applications on portions of the spectrum.Google doesn't really care about what the Telco paid for wireless access. They just want access to the platform. So Google got the open access rules it wanted, forced telecoms to pay for open access airways all for the cost of FCC lobbying and some game theorists hired to formulate an optimal bidding strategy. Google now gets to sit back and focus on its core competencies: search, advertising, and street magic.Reference: 1.

http://www. bignerds. com/papers/3640/Research-Googles-Attempt-Buy-Into-Wireless/

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