Case 4 – Google: Research Google’s attempt to buy into wireless via the 700 MHz Spectrum Auction.
1. Why did Google making this move?
Google’s Motivation to bid into the wireless marketplace through the use of the 700MHz Spectrum Auction was the opportunity to develop possibly a 50 state network “The FCC is auctioning 1,099 wireless licenses in the 700 MHz band, but the most attractive spectrum for many bidders is the “C-block” of 12 regional licenses that may be combined to create a 50-state network.” (Reiter, 2008) This new product development would allow Google to become a cellular network operator. This market includes firms such as AT&T and Verizon, Google would not only compete with these firms but also would have had the opportunity to network with other entities to develop some innovative new products. What do they hope to accomplish?
The prospect of entering into the wireless market offers Google many potential growth and development practices as well as competencies. There are also many risks associated with this strategy, including the cost of building and maintaining a billion dollar network. One particular goal that may have been in mind with this decision is the growth of Google’s vast wireless software portfolio that includes Gmail, Maps, Docs, Calendar Sync and various other applications that can be downloaded to many phones. There may have been other reasons Google chose to take interest into the wireless market such as the ownership of Youtube and its developments in a new website and java beta application that allows people to view tens of millions of videos via cell phone.
2. How does Google’s support for Open Access fit into Google’s plans? Google supporting Open Access really makes this a popular decision. Many people are rooting for Google to bid on the 700MHz spectrum for reasons that it will allow for competitive pricing of many cellular internet features. Furthermore research shows that...