[farber]
http://www.businessweek.com/technology/content/may2007/tc20070503_030284.htm
Google Goes Wireless
A coalition led by the Web search giant is scoring early wins in a
tussle over $10 billion in wireless airwaves
by Olga Kharif
For a company that's had an office in Washington, D.C., for less than
two years, Google is wielding a surprising amount of power in the
nation's capital.
Exhibit A is the influence Google is having on a closely watched
government auction of $10 billion in licenses to provide wireless
service. The Web search giant has hired some big guns to help it
shape the rules for how the auction will be carried out, reflecting
the company's growing interest in the wireless industry and the
rising stakes in the battle for a crucial chunk of airwaves.
CHALLENGING THE INCUMBENTS
Three months ago, Google (GOOG) retained Richard Whitt, former head
of the regulatory department for MCI, the telco formerly known as
WorldCom now owned by Verizon (VZ). Whitt, acting as Google's
Washington telecom and media counsel, is lobbying the Federal
Communications Commission on some of the biggest issues facing the
wireless industry. These include ensuring certain wireless airwaves
are made available for free public use and making sure the auction is
carried out in such a way that up-and-comers get a shot at entering
the market.
Google's agenda is clear. As a provider of a host of Internet
services, including search, e-mail, and online video through YouTube
(NWS), Google wants to ensure its content can flow unimpeded and
untaxed over the world's broadband networks. One way to do that is by
making sure there's plenty of competition in the market for high- speed
Internet accessÂin particular, from providers other than
behemoths like AT&T (T) and Comcast (CMCSA). "Google's key interest
here is in seeing fourth and fifth [broadband access] pipes to the
home to compete with cable and telecom companies," says Whitt.
The company believes that U.S. wireless service, home broadband, and
TV carriers wield too much power in determining what content and
services are made available to subscribers, and "[this auction] holds
the key to creating [more] competition," Whitt says. "There're
potentially lots of folks who could come in."
AUCTION GROUND RULES
Then there are Google's own wireless designs. It's working with
EarthLink (ELNK) to provide a free Wi-Fi wireless broadband network
in San Francisco, and it's trying to spread its mobile search
application far and wide. Plus, according to reports, Google is
developing its own wireless handset.
All of which could explain why, on Mar. 6, Google became part of a
consortium called the Coalition for 4G in America. It includes eBay's
(EBAY) Skype Web-calling service, Web portal Yahoo! (YHOO), satellite
TV companies DirecTV (DTV) and EchoStar (DISH), chipmaker Intel
(INTC), and wireless services provider Access Spectrum.
The coalition has already fired off two letters to the FCC in hopes
of shaping the airwaves auction. It wants the inclusion of policies
like packaged bidding, which would let bidders acquire licenses
nationwide in one fell swoop instead of on a market-by-market basis.
The coalition, widely considered Google-led, also wants the FCC to
offer wide swaths of spectrum, allowing for superfast wireless services.
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