Skip to main content

Google announces bid for US 700MHz Spectrum space

Google has announced (opens in new tab) that it will bid for the mobile airwaves thanks to the U.S. Federal Communications Commission's 700-megahertz wireless spectrum auction which will take place in 2008.

The search engine giant is treading in unknown territories as it tackles a sector where it has no prior experience.

Although there are doubts on whether Google will go the whole nine yards, the move marks a decisive step by the company to up the ante and possibly compete with some of its partners in the Open Handset Alliance.

Research Company Ovum (opens in new tab) dismisses the bid though saying that "it would be a hugely risky proposition that would take Google a long way from its core business model".

A suitable analogy would be if a company like Coca Cola suddenly decides to compete in water distribution.

This thought is also shared by Iain Grant, principal with SeaBoard Group (opens in new tab) who posits that Google might actually use the wireless spectrum to attract more competition and give smaller networks like T-Mobile a chance against more traditional telecommunications companies.

Meanwhile buyers of Google shares were unequivocal as they sent the companies share prices to nearly USD 700 (opens in new tab) which means that the company is on tract to reach its record share price before new year.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.