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Thursday, August 09, 2007

Google is No Dummy

In July, Google has made a stand in their commitment towards open broadband platforms. Basically, they have lobbied the FCC to change policy's ruling the 700Mhz spectrum. The full post can be read here.

Current wireless standards are not open, have you tried to change cell phone providers at all recently? If you are not locked in a 2 year contract, you will be. Not to mention you have to buy a new phone to try a new service. Or how about the fact that if you want to have an Apple iPhone, that you have to use AT&T's network.

Most people do not know that the cell phone technology here in the United States is far behind that of Japan's and many other nations. In Japan, you can walk down an urban street, purchase a new cell phone from a vendor with a table on the street. Then pop a card out of the back of their current phone, put it in their new one, turn it on and dial a call. They don't even have to have their service provider transfer their contacts, its already on the new phone using that little card.

Google's vision would allow consumers to change networks on the fly, without having to purchase a new phone. It would allow consumers to buy a new phone, without having to notify their service provider or sign a new 2 year contract. It would make prices more competitive and would make it easier for smaller service providers to enter the market. It would allow tech users to choose their own software that operates the phone, no longer being restricted to the interface that comes with it.

In fact, if the FCC adopts the new rules of openness, Google will come to the wireless spectrum auction with at least $4.6 billion in their pocket in an effort to show the FCC Chair that openness in broadband platforms will not diminish the value at time of auction. Securing much needed revenue for the US Treasury.

Now why does it benefit Google to have open broadband platforms? Quite simply their mission statement says it all, taken from their website here.

Google's mission is to organize the world's information and make it universally accessible and useful.


By organizing the world's information, they are making it search able, by making this information universally accessible, they are increasing their user base. With a larger user base, they make more money through advertising. Google is committed to their mission statement, that is why if necessary, they will be bidding at the next auction. If they win, do not be surprised if they build their own wireless infrastructure and become a major competitor.

Their goal is to remove the barriers and obstacles many consumers face in accessing the internet. Personally, I want an iPhone. I do not want to be on ATT's network, my whole family is with Verizon. I am also locked into a 2 year contract that ends in January of 2009. Fun huh?

The next step for Google, the GPhone... go ahead and laugh.

Another great article regarding this topic can be found at CNET.

Chris

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