Case 4 Google & Spectrum Auction

JOHN GUILORY

CASE 4 GOOGLE & SPECTRUM AUCTION

CLASS NETW583

OCTOBER 10, 2013

John Guillory

Case 4: Google & Spectrum Auction

NETW583

October 10, 2013

Google & Spectrum Auction: The Move to Wireless

In January 2008 the Federal Communications Commission (FCC) made plans to auction the wireless spectrum in the 700MHz band. This prime airwaves, often called the C block, was a vital piece of wireless real estate that was poised to change the mobile market and whomever became the owner would stand to benefit greatly from the purchase (Medford, 2008). As one of the high stakes bidders, Google and its then CEO, Eric Schmidt wrote to the FCC Chairman to praise him for initiating the auction and stated that this would encourage much needed competition in the wireless markets and allow consumers to have more choices with regard to mobile devices and wireless usage (Google Intends to Bid, 2007). However, the real strategy behind Google’s venture into the wireless market was to ensure that there were very few obstacles to the adoption of Google products, services, and applications on current and future mobile devices. This would mean that the FCC would need to require a more open network standard and the company that owned the C block would have to comply (Karpinski, 2007).

Google & Spectrum Auction: Open Access

Google’s interest in the wireless spectrum presented the search engine giant with many prospects and has led it to launch programs such as the Open Handset Alliance which is an open development platform for mobile phones. Also Google has lobbied with Congress and has encouraged the passing of net neutrality laws which would forbid broadband providers from blocking or slowing user’s access to Web content that was not approved by the provider. Additionally, Google’s interest was sparked when AT&T and other large broadband providers sought to have Web-based businesses pay...