Google: Research Google’s Attempt to Buy Into Wireless Via the 700 Mhz Spectrum Auction.
Verdell ChesterTM-583 Case 4 – Google: Research Google’s attempt to buy into wireless via the 700 MHz Spectrum Auction. 1. Why did Google making this move? Google’s Motivation to bid into the wireless marketplace through the use of the 700MHz Spectrum Auction was the opportunity to develop possibly a 50 state network “The FCC is auctioning 1,099 wireless licenses in the 700 MHz band, but the most attractive spectrum for many bidders is the “C-block” of 12 regional licenses that may be combined to create a 50-state network.
(Reiter, 2008) This new product development would allow Google to become a cellular network operator. This market includes firms such as AT;amp;T and Verizon, Google would not only compete with these firms but also would have had the opportunity to network with other entities to develop some innovative new products. What do they hope to accomplish? The prospect of entering into the wireless market offers Google many potential growth and development practices as well as competencies. There are also many risks associated with this strategy, including the cost of building and maintaining a billion dollar network.One particular goal that may have been in mind with this decision is the growth of Google’s vast wireless software portfolio that includes Gmail, Maps, Docs, Calendar Sync and various other applications that can be downloaded to many phones. There may have been other reasons Google chose to take interest into the wireless market such as the ownership of Youtube and its developments in a new website and java beta application that allows people to view tens of millions of videos via cell phone. .
How does Google’s support for Open Access fit into Google’s plans? Google supporting Open Access really makes this a popular decision. Many people are rooting for Google to bid on the 700MHz spectrum for reasons that it will allow for competitive pricing of many cellular internet features. Furthermore research shows that Google supports open access initiatives like a concept called network neutrality, this is a principle proposed for user access networks participating in the Internet.It advocates that no restrictions can be imposed by internet service providers and governments on content, sites, platforms, the kinds of equipment that may be attached, and the modes of communication. Google still supports this idea but has made moves in this direction like stated in their public policy blog “FACT: Google has been the leading corporate voice on the issue of network neutrality over the past five years. No other company is working as tirelessly for an open Internet. But given political realities, this particular issue has been intractable in Washington for several years now.
At this time there are no enforceable protections – at the Federal Communications Commission or anywhere else – against even the worst forms of carrier discrimination against Internet traffic. ” (Whitt ;amp; Counsel, 2010) This bid would provide google the ability to offer the most openly accessible network. 3. 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 is not known for developing a large wireless network, but they are known for its advertising capabilities.This opportunity can present Google the chance to gain this ability and further strengthen its advertising ability. Google should invest in this opportunity although it may currently not fall into its current competencies; Google has capabilities that can allow them to develop newer competencies through their current ones.
By taking their ability to advertise and the ability to deliver new internet products they can develop a superior network that enhances their ability to advertise and present customers with vast channels of information.Another option is looking toward some of Google’s partnerships and ownerships and collecting resources from their wide variety of talent to develop a team tasked with developing the new competencies needed to make the new business venture successful. Similar to Google spearheading the Open Handset Alliance’s Android mobile platform, this new venture will need to break boundaries and establish Google as a premiere wireless network. “This situation has crippled consumers’ ability to use the Internet on their mobile devices, compared to how they use it on their PCs.Google executives say their aim is to bring the PC-style of Internet openness to the mobile world so that users have more choice in mobile services and applications, as well as price. ” (Mills, 2007) Google has the opportunity to develop the competencies for emerging as a successful wireless network yet they have to take the risk of investing into this opportunity. Google has the customer support and the finances to go for it, and it doesn’t look like a bad choice.
Bibliography:Mills, E. (2007, 11 30). Cnet news. Retrieved 12 5, 2010, from Google versus the Telcoms: http://news.
cnet. com/Google-versus-the-telecoms/2100-1039_3-6220909. html Reiter, A. (2008, 2 5).Internet Evolution. Retrieved 12 5, 2010, from Internet Evolution: http://www. internetevolution.