Curious to know more about Google’s mobile ambitions? Check out this article over at the Wall Street Journal entitled “Google Has Even Bigger Plans for Mobile Phones.” According to the story, Google is gearing up to spend at least $4.6 billion dollars (or more) for a piece of the 700 MHz spectrum. The company is primarily focused on the “C” block of the spectrum although it’s reported that they might be interested in other blocks too. Google is apparently working out a plan to either rely on it’s own cash or borrow some money to finance the bid.
So why bid on this spectrum? You only have to look at what Google is currently doing on it’s own campus. The company is currently running a test version of an advanced wireless network at it’s Mountain View headquarters which would give it some experience in knowing what it’s like to run a full scale national mobile service.
Google has consistently said that they would like to make mobile networks much more open than it is right now. The grand scheme according to Google is to give consumers choice in what services they can use and what applications they can use for that service. Mobile carriers are typically notorious about controlling their mobile networks and of course they have every right to do so. Their network and their customers are everything to their business. Open that up to the competition and it can easily threaten their existing business model. Of course, Google wants to change all of that – even possibly coming up with plans such as charging one time licensing fees for customers and no monthly access charges thereon after. So how would the company make money without subscription rates? Advertising of course.
It’ll be interesting to see how this all pans out for Google and ultimately the consumer. We’ll all know a bit more about Google’s ambitions for the auction by December 3rd at the latest.
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