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Google, You're a Wireless Tease
Sorry to contradict the "Google's loss was a win" meme, but...

Give them some credit -- before the 700Mhz auction Google lawyer and lobbyist Richard Whitt argued that the game was rigged, and that it was nearly impossible for a pesky upstart to beat AT&T and Verizon in the 700Mhz auction. While Google got a lot of attention pretending that they'd give it a shot, the end results indicate the search giant didn't try very hard, winning no licenses and essentially bidding to lose.

Still, Google posted to their policy blog that the auction, in which the last great batch of wireless spectrum was gobbled up by industry incumbents, "produced a major victory for American consumers." In a statement shortly after the winners were announced, Google insisted that "Consumers soon should begin enjoying new, Internet-like freedom to get the most out of their mobile phones and other wireless devices."

Yes, here's the part where we're supposed to tell you that Google's loss was actually a win, because Google forced the FCC to attach some barely enforceable Carter-fone "open access" conditions to the spectrum, resulting in a brave new world of wireless connectivity. Sorry, that's nonsense. In the years we've watched AT&T and Verizon at work, there's not a law, condition, or requirement their lobbyists haven't been able to wiggle around, through or over -- given enough time and resources. To expect otherwise here is folly.

And if you think Verizon is upset because Google managed to nudge the spectrum price tag up by a billion or two, you're underestimating Verizon's profit margins. Spending decades charging grandmothers seven bucks and up for a feature like caller ID (that costs pennies to provide) does have some benefits, you know. Making Verizon overpay for something is kind of like making Lance Armstrong bike another twenty yards and then screaming victory.

The most Google accomplished was to make a small ripple in the very large pond that AT&T and Verizon inhabit. While the auction's biggest winner, Verizon, is taking baby steps toward "open access," those steps are largely showmanship, over-stated by the media, and will come at a steep premium for consumers. The primary focus will remain on promoting their traditional phone options, with "open access" connectivity offered begrudgingly as a luxury service (with a highly restrictive terms of service). It will remain business as usual.

Google is an advertising company concerned with selling ads, and never intended to be a philanthropic network operator. While they could have teamed with another company to build and manage the network, existing partners such as Sprint or Clearwire were in no position to extend themselves. Google's only play here was a political one, and its impact was negligible. In the end Google created little more than a whirlwind of free press for the Google brand, while the last great hope for wireless broadband competition evaporated into the digital ether.

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RadioDoc

join:2000-05-11
La Grange, IL

2 recommendations

RadioDoc

Thanks Karl.

It's about time Google started to be called what they are, which is an "advertising company concerned with selling ads". I would complete that thought by including "a publicly traded" in that sentence before "advertising". Their duty is to their shareholders and if that somehow benefits a customer here and there then great.

They do marketing by press release. Unfortunately a lot of the press swallows it whole without a single critical thought.

Thanks for shining the light.