With the finance and tech industry, and every mobile-phone company and service provider (nervously) geeking out about Google’s latest foray into the mobile-phone market, Google drops another bomb – they’re preparing to bid the minimum entrance fee of $4.6 billion on the upcoming high-stakes 700-MHz auction – sans investors.
What exactly does this mean for us? Simply put, federal law mandates that television broadcasters convert from the current spectrum-hogging analog format to the supermodel-skinny digital signal by the year 2009. This conversion will free up a lot of bandwidth. The sort of bandwidth that can deliver a higher-strength and more reliable broadband wireless service.
So, Google is hoping to purchase a piece of the spectrum-pie, eventually offering consumers a way out of the tangle of service providers that currently clouds up the airwaves. DSLReports says:
Obviously operating your own network is one way to circumnavigate any incumbent wireless stranglehold on your content or ad delivery. Given that running a wireless network might be outside their core competency, the company would probably bring in a build and operations partner, or lease the spectrum to another company with the obvious understanding that Google content and services would be king.
Wired Explains the 700-MHz auction in detail.