paul callahan…mostly common sense

In the world of perception management, it does not get any better than this.  For months before Google’s entry into the wireless world, blogs were buzzing with speculation over the secret creation of a Linux-based gPhone.  But the real coup de grace was the coverage by the Wall Street Journal and the New York Times during the week prior, on the day of the announcement, and on the day after the announcement.  Getting that kind of business ink can only be described as a demonstration of pure market power, the likes of which rivals Intel’s paid-for Centrino nonsense of a few years ago and Apple’s recent iPhone launch.

But I have to admit that Google’s push into the world of mobile handsets means nothing but goodness for the business.  Google is not going to stem the melting of the ice shelf in Greenland, but it will change the course of the wireless service provider industry.

The drug that we are all hooked on – the mobile phone – will be altered to bring on more Internet applications and yield an even bigger dependency…Hopefully, mobile operators will see that.

Full disclosure: No position in Intel, Apple, or Google at time of writing.

Directory Tags: | Wireless | Apple | Google | 3G | Linux | 700 MHz |SEC |Mobile |

Having lots of money changes your behavior. It doesn’t matter whether you are an individual or a large company. Look at Microsoft. It has hobbies — endeavors outside of its core businesses which it finds amusing, but don’t really matter — like MSN and MSNBC. Now Google is interested in wireless and has made cryptic comments recently regarding participation in the upcoming FCC auction for 700 MHz wireless spectrum. Is this just a hobby, and is Google behaving like every other overfed rich guy on the planet? Or is the company really willing to step up and change the way mobile networks are constructed, operated, and paid for?

Personally, I think Google should pony up with the money and build a network. It will be the first time it has ever had to deal with ugly nuts and bolts of supporting a real network and cope with the holy terror of customer satisfaction. Maybe Google can change the business, but it needs to do something other than sniping from the sidelines to find out.

Full disclosure: No position in Microsoft or Google at time of writing.

Directory Tags: | Wireless | Microsoft | Google | 3G | 700 MHz |SEC |Mobile |

The FCC’s recently issued an order on the use of 700 MHz spectrum.  The airwaves have been occupied by television broadcasters, and will be made available for other wireless services, including public safety and commercial services (download the FCC press release).  The spectrum will be vacated by TV broadcasters on February 17, 2009 and auctioned no later than January 28, 2008.  Based on the press release, the FCC order creates:

1. “Open Platform” wireless spectrum.  Whoever wins the auction for this huge chunk of spectrum (22 MHz) must agree to “provide a platform that is more open to devices and applications.”  The goal is to “allow consumers to use the handset of their choice and download and use the applications of their choice.”
2. Nationwide public safetey wireless spectrum.  The winner of the bid for 10–20 MHz of “Nationwide Commercial” wireless spectrum, will join in a Public Saftey/Private Partnership and will also win the right to “build out a nationwide, interoperable broadband network for the use of public safety.”  The winner also gets to use some of the Public Safety network (see the transparent overlap in the figure) as long as their use of the Public Safety network is pre-emptible when there is an emergency.

What is the impact?

1. Google must build a network if it wants to play.  Despite a severe attack of arrogance, Google did us all a favor by influencing the FCC to set aside spectrum for an open platform wireless network.  But the bad news for Google is the fact that it will not be able to buy the spectrum and make money by wholesaling access to the airwaves to others.  Google must bid on the spectrum like everyone else, and then it must build a network and operate it.  Maybe for the first time ever, Google will be faced with getting its hands dirty.  Build a real network, operate it, and deal with all those nasty users complaining that it doesn’t work the way they want it too.  Accountability.  Jeesh, what a bad dream.  Of course, Google can hire someone to build and to run it, but ultimately it will be theirs.
2. The big plum is in the Public Safety spectrum.  The winner of the auction for the National Commercial spectrum, not only gets to build out the Public Safety network and use some of the spectrum when possible, it gets to compete with the Open Platform winner in the 700 MHz band.  What’s so great about 700 MHz?  One of the biggest problems for mobile networks today is coverage, indoor and out.  Because 700 MHz is lower frequency than most of today’s cellular networks, it will have fantastic propagation characteristics.  It will go further in the open air than today’s cellular, and it will penetrate build walls better.  Expect the bidding to be fierce for this chunk of spectrum.

Full disclosure: Employed by AIRV, no position in GOOG at time of writing.

Directory Tags: | Wireless | WiFi | Wi-Fi | DSL | Cable | UMTS | CDMA | WiMAX | Google |Muni Wi-Fi |