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Is Google Gearing Up To Take The Airwaves?

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That’s what BusinessWeek concludes in a detailed article that recounts Google’s recent efforts to influence the outcome of the U.S. government auction of $10 billion is licenses to provide wireless services. The rules won’t be announced until June, but Google’s lobbying activities and its March move to join the Coalition for 4G in America (a consortium that joins Skype, Yahoo, satellite TV provider DirecTV, EchoStar, Intel and wireless services provider Access Spectrum) are bearing fruit. The coalition – which is widely considered to be dominated by Google – has petitioned the FCC asking for policy changes in the airwaves auction. If it has its way the auction will allow packaged bidding, a policy change that would let bidders acquire nationwide licenses.

At first glance it seems Google’s agenda is about shaking up the market to make room for all companies - not just the usual suspects (AT&T and Comcast, for example) –to compete for a license. This would pay off for Google since more competition would benefit its efforts to deliver its content “unimpeded and untaxed” over the networks, BW notes. “One way to do this is to make sure there are plenty of companies offering access.”

But there are other motives that are less about Google championing increased competition and more about the search giant’s ambition to extend its reach into wireless. This is hardly far-fetched since Google already offers free Wi-Fi in San Francisco thanks to a partnership with Earthlink. There are also indications that Google may bid in the 700 MHz auction, either on its own or together with Earthlink. BW quotes Richard Whitt, Google’s Washington telecom and media counsel as saying: “We’ll certainly look at other wireless opportunities out there.” Add to that rumors that Google is developing a Google phone – and one can imagine where this is going.

Is Google set on a course of world domination as this recent BW article suggests? (One scenario captured on video that was originally comical doesn’t seem so funny anymore…) It’s easy to Google-bash, so I won’t sink to that level. But I will point out how Google’s mobile search offer plays in this to have a potentially unsettling impact on how we acess and consume mobile content (a capability BW skimmed over in the piece). If Google does indeed go wireless, then it will control two key touchpoints to mobile content and apps: the network and the mobile search engine. It will also be in a prime position dictate the mobile advertising ecosystem from end to end and not have to bother with pesky mobile operators and third-party players that demand their share of the ad revenue pie. The jury is out on whether this is the plan. But if anyone can pull this off, Google can.

May 3, 2007 6:09 AM ET

Posted In: Search, Technologies / Formats, Companies, Google

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