Business

What the FCC's Auction Means

(Page 2 of 2)

  • Monday, March 24, 2008
  • By Kate Greene

Google's push to open the C block spectrum spurred Verizon to announce on Wednesday that it would allow devices it does not sell to use its network later this year. In the short term, this could have the simple implication that a person can use Verizon's calling plan with any unlocked cell phone. But in the long term, says Reed, the open network could lead to other types of devices, such as cameras and mobile computers taking advantage of cellular networks. "I think the best-case scenario is that there will more likely be new classes of devices not specifically thought of as phones," he says.

In addition to new types of devices, Reed says, constant connectivity using different wireless services could become possible. Verizon and other providers have historically not allowed devices on their networks to use Wi-Fi. The breakthrough for cell phones and Wi-Fi came with the Apple iPhone, Reed says, but that decision "was a special deal." But now, he says, it'll be easier for device makers to build communications that don't need to be tied down to the rules of a cellular provider.

In particular, the open C block will be a boon to Google's mobile-phone software project called Android. "The Android project has been a big beneficiary of the openness of the spectrum," Reed says. Networks such as Verizon, he says, were not going to be able to keep up with the next-generation devices without opening up.

By letting device makers take advantage of the open spectrum, Verizon benefits too. "It turned out well for both Verizon and Google," Reed says "There's a new basis for both competitions and cooperation that will hopefully generate much more innovation that will benefit everybody."

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Sjobeck

20 Comments

  • 1422 Days Ago
  • 03/24/2008

disappointed

I am disappointed in both Google, and Apple, for all their talk on this one. I wish Google would have bought some spectrum & used it at a minimum as a bargaining chip with the two celco's & at best to actually use it & actually start to change (ie: fix) Amerika's broken cell service.

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bj

50 Comments

  • 1422 Days Ago
  • 03/24/2008

Re: disappointed

We're all disappointed. But the auction rules favored the Incumbents, who already have networks in place, so the outcome was, in essence, rigged. The one good thing is that, since the bidding was anonymous this time, the incumbents had to pay fair market value.

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mkogrady

425 Comments

  • 1415 Days Ago
  • 03/31/2008

Lower Frequency Spectrum

Better Penetration, longer distances etc - seems t me that both AT&T and Verizon will raise the bar on wireless broadband applications

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