[opendtv] Re: News: Google Pushes for Rules to Aid Wireless Plans

At 6:15 PM -0400 7/21/07, Albert Manfredi wrote:

http://www.nytimes.com/2007/07/21/technology/21google.html?_r=1&th&emc=th&oref=slogin
If I got this right, Google wants the 700 MHz auctions to go exclusively to providers who will offer broadband wireless Internet access. And they also want the phones to be generic, usable on any wireless network.
I don't think that it is correct to characterize this as a wireless broadband initiative, although I agree that the end result is much the same when you put a smart phone on a subscription based data network. There are MANY layers of complexity related to providing wireless telephone service that have little to do with broadband access - data services typically are an add on to these basic features.
For example, the visual voicemail feature on the iPhone required extensive software (and hardware?) development by AT&T in addition to the software for the phone.
This is not to say that the design of existing wireless telephone networks is optimal. Obviously it is now possible to use a service like Skype to bypass the telco WANs, and there are Internet-based local phone competitors. But they must either lease or deploy the technology to interconnect with the wired telco switches.
Clearly what Google - and apparently some of the FCC Commissioners - are trying to prevent is an expansion of the status quo. That is, all of this spectrum being gobbled up by the incumbent wireless carriers, who can then continue to operate closed networks as they do today. 

I posted another NYT story about this this morning.
Of course, that would benefit anyone developing software for Internet clients, mobile or otherwise.
The first request would clearly annoy some bidders. What if bidders want to use their spectrum for something other than Internet access?
I don't think the rules that Google is requesting would prevent that. It would be possible, for example to launch a subscription video service (e.g. wireless cable). The rule would simply force the system operator to allow consumers to buy receivers of their choice, and these receivers could run applications developed by third parties. The service providers would use either a SIM or some kind of decryption keys to authorize a new subscriber. This is VERY MUCH like what Congress has been trying to do to open up the market for cable set-top boxes.
On the generic clients, I suppose there are examples both ways. For example, the model the cable and DBS industries have used since their inception would be a counterexample. If you do NOT assume the 700 MHz spectrum to be related to Internet access, then going in with examples of how Internet clients are sold today makes little sense. 

Maybe Google should consult with the NCTA, to get the opposing points of view.
The NCTA is to cable as the NAB is to broadcast TV, as the telcos are to telcom services - they ALL use the power of governmental regulation to maintain oligopoly control over most aspects of their services. 

I believe that this is the real hurdle that Google is trying to overcome.
One need only look at the vibrant new markets that have developed in the small chunks of unlicensed spectrum set aside for wireless telephone handsets, WI-Fi, Bluetooth, etc.
In the end, the differences may be small. The telcos and cable want to manage the cash flow associated with subscriber fees ( and tax and third party service allowed to use the network). Google wants to provide the network services in exchange for advertising, which will generate a comparable cash flow that they can manage as they do today with their search engine. 

Regards
Craig


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