What the F Google?
If you've seen the David Blaine Paradoy on YouTube with frustrated victim's of Blaine's street magic running way yelling "What the F David Blaine!" you can imagine how telecoms are feeling this morning about Google and the FCC auction. Without owning a bit of the airways or selling as single phone, Google is leaving telecoms spending billions to avoid a full scale disruption of their market.
Verizon and AT&T are the big "winners" of the FCC auction. From the New York Times:
It [Google] wanted the company that won the C block to open its network to devices and services from rival companies. Those rules will apply to Verizon, which said Wednesday that it would allow devices it does not sell on its network later this year. AT&T does not have to open its system, but has said it would anyway.
The NYT goes on to say this does not bode well for competition:
Because the two largest carriers are solidifying their hold on spectrum, it is unlikely that competition will bring prices down for consumers. The new spectrum may, however, improve wireless service quality.
But then again, Google doesn't really care about what we pay for wireless access, they just want access to the platform. So Google got the open access rules it wanted, forced telecoms to pay billions ($9.4 billion for Verizon, $6.6 billion for AT&T according to AP) for open access airways all for the cost of FCC lobbying and some game theorists hired to formulate an optimal bidding strategy.
Google now gets to sit back and focus on its core competencies: search, advertising, and street magic.
Email This!
Digg it!
Sphere it!
Del.icio.us
Reddit!
Newsvine
