[opendtv] News: Google Eyes Free Spectrum
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 31 Jan 2008 07:17:12 -0500
http://www.forbes.com/2008/01/30/spectrum-auction-google-tech-wire-cx_ew_0130auction.html?partner=technology_newsletter
Between The Lines
Google Eyes Free Spectrum
Elizabeth Woyke 01.30.08, 10:41 AM
The ongoing auction of choice, 700 megahertz radio spectrum by the
Federal Communications Commission is a game for high rollers,
including telco giants and Google. One company will likely pay more
than $4.6 billion for the rights to that realm. Through that space,
the auction winner--and competitor--could eventually beam all kinds
of signals, including voice, digital video, data, to your toaster.
But there is a cheaper way to get data through the airwaves. Just ask
Google (nasdaq: GOOG - news - people ).
Google intends to be a big player in the airwaves. At the recent
World Economic Conference in Davos, Chief Executive Eric Schmidt said
that mobile devices with location-based advertising could spark a
"huge revolution," more interesting than the personal computer.
But along with taking part in the FCC's auction, Google has also been
trying to get into the so-called "white space"--slivers of
unlicensed, unused spectrum that lie between television channels. And
that makes the telcos nervous.
The white space channels were originally designed to prevent radio
waves on adjoining channels from bleeding into each other. They're
considered too narrow to be auctioned off. Even so, they're in a
choice portion of the spectrum where analog television currently
lives, an area that could be used for data services, much like the
700 MHz spectrum. Use--if approved--would begin in February 2009.
The idea of utilizing white space spectrum has bounced around for
years, stymied by concerns of TV signal interference and the
objections of the powerful broadcast lobby. Then anticipation
surrounding the 700 MHz auction renewed interest in all areas of
spectrum, says Scott Ellison, IDC's vice president of mobile and
wireless communications. "People were looking at other things in the
broadcast space ? tech companies probably thought, 'Can't we start
using this spectrum in a more efficient way?' "
Exactly what Google would do in the white space is a subject of
debate. Is Google's zeal for white space a hedge against losing the
auction? That seems a bit of a stretch, particularly since there has
been widespread speculation that Google isn't worried about winning
the auction--just about ensuring that anyone can send data through
the spectrum. Last summer, Google nudged the FCC to adopt a provision
that gets triggered if the auction price exceeds $4.6 billion. That
provision ensures that networks built in the newly sold spectrum
would be open to all third-party devices. By actively bidding, Google
can make sure that the final price is north of that magic reserve
number--and so make the spectrum open.
Google's interest could simply be a land grab for any available slice
of spectrum. "Anything that provides a way to push ads while not
benefiting existing carriers is beneficial for Google," says Rory
Altman, director of telecom consulting firm Altman Vilandrie & Co. Or
it could create a low-cost experimental playing field that lets
technology companies try out new services without the added cost of
spectrum access. Companies "could experiment with new devices and
services away from the incumbents, then use the experience to expand
into other [spectrum] areas," notes Phil Asmundson, U.S. Technology,
Media & Telecom Industry Leader at Deloitte & Touche.
The vacant channels have also attracted other technology bigwigs,
including Microsoft (nasdaq: MSFT - news - people ), Intel (nasdaq:
INTC - news - people ), Dell (nasdaq: DELL - news - people ) and
Hewlett-Packard (nyse: HPQ - news - people ). In late 2006, those
companies joined with several other firms and organizations--and
Google--to form the White Spaces Coalition, which advocates using the
unlicensed space. In 2007, coalition members gave the FCC two
portable wireless devices designed to operate in the white spaces
without interfering with adjourning television broadcast channels.
The FCC reported in July 2007 that a gadget built by Philips
Electronics didn't consistently detect broadcast signals and one
built by Microsoft had flunked the tests.
But a failed first attempt has never stopped a technologist. The
companies regrouped and by January had resubmitted four
coalition-made devices to the FCC for fresh testing. The process is
expected to take two to three months.
A successful trial could usher in a new set of competitors for
telcos, which are already battling cable providers and satellite TV
companies for customers for data services. That's a big growth sector
for telcos, which have been struggling to offset declining voice
revenues.
That's spurred No. 3 and No. 4 operators Sprint and T-Mobile to ask
the FCC to regulate use of white spaces and earmark it for
established carriers. Google responded by requesting the FCC ignore
the carriers' request, describing their proposal as "not the most
efficient, or even marginal, use of the white spaces."
AT&T (nyse: T - news - people ) and Verizon (nyse: VZ - news - people
) haven't publicly opposed the use of white spaces, presumably
because their larger networks better shield them from such
competition. "They are so advantaged in the amount of spectrum they
own, these small slivers aren't all that threatening to them," says
Asmundson.
They also know how complicated it is to build out a profitable
service. Mobile data services generally require a good chunk of
spectrum--say 20 MHz to 30 MHz--to support a business. "You could
have some interesting applications in these little bands, but the
technology is not at the point to do anything in a major way," says
Ellison.
Still, the idea of Google wiggling into the white space as a cheap
route to consumers has the carriers watching their back.
Adds Ellison, "Google has the heft, money and know-how to play all
the fields and see what works."
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word
unsubscribe in the subject line.
Other related posts:
- » [opendtv] News: Google Eyes Free Spectrum
