A couple weeks ago I ranted about how I felt a lot of mobile 2.0 companies were designing applications based on platforms that were going to evaporate in a couple years. I got a lot of flak for it, even for a small blog like this. However, it looks like it may happen sooner than expected, like 2009 sooner. And it’s not just because Facebook’s mobile app has had pant-wetting level of success (1,999,767 users < month).
Google's dipped into its pockets and threw the FCC a $4.6 billion bone for the 700 Mhz spectrum set to go on the chopping block later this year. Google and a bunch of other companies want to open the spectrum, which could provide open access to the internet, a task Google has only been able to accomplish in Mountain View.
Old Spectrum With Super Awesome Hidden Powers
700 Mhz was the spectrum originally used to feed analog signals to that dinosaur of a TV collecting dust in your living room while you watch YouTube instead. It’s coveted as beachfront property because of its Super Man-like abilities of easily penetrating walls and carrying over long distances. GigaOm has some great background on it.

Now it’s license is up for sale and everyone’s salivating over its new uses. Naturally the entrenched mega-monopolies have their eyes set on it. Verizon and the others want to maintain the status quo that lets them continue shoving VCrap plans at their customers. The .com company’s naturally want the dumbest network possible, to lower friction for putting their products in front of mobile consumers. In an eerie display of camaraderie they even started their own fan club called the White Spaces Coalition consisting of web companies and device manufacturers.
Google Has Friends in Stuffy Places
The FCC chairman even wrote his own fan letter, outlining how awesome open networks are. Mama Bell broke ranks and supported him (probably because they don’t have any data services to sell). However, his version is not open enough in Google’s mind. Chris Sacca, Head of Google’s Special Initiatives thinks they don’t cross off all the boxes on their 4 pronged open platform check list.
- Open applications: consumers should be able to download and utilize any software applications, content, or services they desire;
- Open devices: consumers should be able to utilize their handheld communications device with whatever wireless network they prefer;
- Open services: third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
- Open networks: third parties (like Internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee’s wireless network.
Google’s Self Deprecating Benevolence
I think the idea of open internet on any device is great and should happen. Dumb networks are fantastic and allow for distributed innovation by removing pointless dependencies. However, I just have one big question, well, 4.6 billion little ones. Why is Google going to be the one to pay to open up the spectrum? Their slogan is “don’t be evil” not “commit open acts of self deprecating benevolence”. Do they feel that confident in their interweb dominance that they figure any device with TCP/IP will be using Google and running their ads?
One other possible explanation I see is that Google is just putting it’s chips on the table so their opinion is heard. Spectrum usually sells for much more than $4.6 billion. Aloha partners, one of the bidders, thinks the auction could hit the $20 - $30 billion range. So, it seems that for now, Google is just riding the press wave and seeing how far they can push their agenda.
I hope their agenda succeeds, even though I don’t know if I want them to be the owners. Just please God, don’t let the winner be a giant telco.

July 21st, 2007 at 12:06 am
It wouldn’t surprise me if the auction leaps far higher than expected. The UK 3G spectrum auction in 2000 was expected to raise $4bn, but it ended up at $45bn. That said, it remains to be seen whether the US has the “mobile fever” to drive up the prices
July 22nd, 2007 at 3:23 pm
holy crap. I really wonder how these deals are structured when you’re dealing with this amount of money.