WSJ: Google preparing $4.6 Billion or more for slice of 700MHz spectrum
By Thomas Ricker 
posted Nov 16th 2007 4:47AM
posted Nov 16th 2007 4:47AM
$4.6 Billion. That's the number Google is preparing for rights to the 700MHz wireless spectrum according to the Wall Street Journal. Even more, if that's what's required to get a chunk of that sweet-spot frequency for consumer electronics. Citing "people familiar with the matter," Google is planning to make the offer alone, without any partners, relying on their own cash and possibly some borrowed money. To illustrate how serious Google is taking the matter, the WSJ reports that Google is already running an advanced wireless network under a test license from the FCC at its Mountain View campus. Why? In order to gain the knowledge necessary to run a national carrier. You know, just in case they win the auction and decide that that is the business model they wish to pursue. The FCC deadline for declaring intent to bid is December 3rd. A date Verizon, AT&T and others are watching very, very closely.
$4.6 billion buys a lot of kids their two front teeth.
Ive heard alot about the 700MHz spectrum... what is it all about??.. alot of companies seem to want a stake in it.
its the spectrum that will be availible to everyone after the HD signal switch. Currently that is what the TV and Radio analog signal ride on, and of course Congress passed the law that all TV and FM analog signals have to be disabled by Feb. 19th, 2009. (Which goes into the HD conversion box, another topic all together)
This spectrum easily travels thru walls and such a whole lot better in comparison to others.
Jason - There have been noises about delaying that date. I wonder how much pressure Google's money will place on keeping that a firm date. Also, what happens when I start getting phone calls on my old analog TV? :)
Jason- FM Radio operates in the 70 mhz-110 mhz range, globally, not in the 700 mhz range (in the US 88.1-107.9). Also The FCC Mandate does not affect Radio, only OTA (over the air) TV.
PS. The way sound is transmitted with Video Signals is a form of QAM (Quadrature Amplitude Modulation), which is AM based (that the reason why when a thunderstorm is occurring nearby, the sound and Video Signal get interference).
Hope that clears things up
Joe
Google is starting to get scary.
Pfft . . . it's just words on paper.
Actually, $4.6 Billion is chump change relative to the amounts that Verizon and AT&T can serve up. If you check out how much each company has in total equity (money that they have sitting around, that they can do anything they want with), it looks like this:
Google: 21 Billion
Verizon: 50 Billion
AT&T: 111 Billion
AT&T is a very big company and unless Google wants to get its hopes crushed, I wouldn't bank on winning the auction.
google = umbrella corporation.. soon we will all be zombies
United States of Google.
Hey maybe the United States of Google wouldn't be such a bad idea. Unless an unnamed Gulf state has large untapped deposits of bandwidth- then we'd be in trouble.
I wonder how long till Microsoft jumps in the pot. I just dont see any carriers adopting Androied handsets while google builds their own data network.
Hmmm... If AT&T or Verizon were to win the auction the resulting services and products would be fairly predictable, expensive, and boring.
If Google wins the auction it will initially mean some cool innovative use of the spectrum, but then they will slowly use their power to make the rest of us their slaves.
Hmmm... who to root for?
I still think there could be a partnership with Apple.
Partnership with Apple? Google wanted this to be open, not closed and locked down.
$4.6 Billion may sound like a lot, but it's pocket change compared to that spent by UK telecoms companies for 3G licences. Vodafone paid £6 billion ($9 billion at the time) for a UK 3G licence. That works out at $150 per capita. To match that per-capita spend, Google would have to shell out $45 billion!
U.S. Dollars?! Bwahahaha! U.S Dollars! GOOD ONE GOOGLE!
Interesting. It really doesn't seem like THAT much since this investment could pay off in the tens and hundreds of billions within the next 10 years. What's even more dangerous is if Google DOESNT win. Apple? Verizon? ATT? etc. You don't want this getting in the hands of someone that can monopolize over people any more than they already do. Google will never change from their 'we love everyone, everything should be cheap or free' ideal. Apple and AT&T..or worse, thats just scary.
Thanks WSJ! Now Let's see $4.6 billion divided by 4 (VZW, ATT, Sprint, TMobile) = $1.15 billion each to keep Google out of the wireless game. If I was any of the four, it's definitely an investment I'd be willing to make...
I kind of get the feeling the 4.6 is a low ball figure in hope other companies will group up to create a larger bid.. Then Google comes out with their real bid and the others take too long to agree on a new amount...
If it's 4.6B, google shouldn't have to borrow any money. They don't pay dividends, and I don't think they've made enough acquisitions recently of large enough scale to drain the huge amounts of funds they should have lying around.
If you look at the ULS on the FCC site it seems google has 2 licenses. One license is for security/maintenance services granted in 06 and another one isnt identified for a particular use. Looks to be a 5 channel conventional UHF system at the Mountain View campus granted in 04. The WSJ could be right, or they could be wrong.
I'm backing google. I'll give them an extra 10 bucks to that 4.6 if they need it.
The only reason I can see Verizon, AT&T, whatever else is out there these days getting in on this action is because they know they're going to be losing customers hand over fist due to its openness.
http://arstechnica.com/news.ars/post/20070731-fcc-sets-700mhz-auction-rules-limited-open-access-no-wholesale-requirement.html
If one of the big mobile companies win... I can't expect what will happen. I'm sure they'll find some way to screw us all anyway. If Google wins, everybody wins -- they already have a precedent of not screwing their customers.
When it comes down to it, I'd rather have Google running the country than the Republicans or the Democrats. At least they know how to listen to what people want and follow through.
Keep in mind that you are not truly a customer of Google. The customers are the one who pay google to show their ads, or the people who show those ads via adsense. And if you use adsense on a minor basis, then you know that google does indeed screw you, because they're more than happy to accuse you of click fraud, take away your money, and leave you there re-reading the ToS and seeing that yes, they can indeed do that.
Can you imagine making a call and then being bombarded with ads instead of a ringtone? Oh it hurts. Maybe Google is what the Bible refers to in the book of Revelations?
There are many companies who's products and/or services I use without any emotion.. and there are a few companies that I actually genuinely like. Google's one of them so I'm all for this.
If this turns out to be terrible, then no problem, I'll go back to using the other company I genuinely like: T-mobile.
I wish I had 4.6 billion in cash just laying around. I would make 50" plasmas the new wallpaper.
Where does that money go once [if] they pay it? Who does what with all that money? Whom does it benefit, if at all? Honestly, I really want to know.
Google running the country?
You mean we'll be stuck on "USA beta" for 5 more years!?
I love Google to death, but give them the power to control people the way they potentially could with their own wireless service, and those cute puppy dog eyes could turn into reflections of fire and brimstone. I'd love to see them win this auction, but I am also afraid of how this will effect their ego. Could have another Microsoft on our hands, and we don't need any more of that.