I Predict Google Cell Phone Network

This information (aside from my clearly stated opinions) is from an article onpage B1, Wall Street Journal today (11/16/07)

Google has set up---with approval from the FCC---a small private cell phone network on its campus. The Wall Street Journal describes it as a "advanced high-speed wireless network." They are preparing to bid for a chunk of the wireless spectrum, though they have not officially confirmed their intentions to make the bid. (Yet it is obvious that they will bid.) Apparently it will be bidding $4.6 billion. It also appears that they will be bidding without a partner, in part to give them more flexibility in their bidding strategy -- which is being crafted by specialists in game theory. It is also said they are afraid that if they partnered with some people it would offend the people that they did not partner with. In addition, Wall Street seems eager to lend them money so that makes that part easy.

Part of what they're going after is 700 MHz, a type of signal that can travel very far between towers and therefore needs less towers.

A few days ago, the story came out about Google's new open platform for cell phones, called Android, I think. They have a Taiwan manufacturer preparing to make the cell phones, and I guess a few of them were made because they are already using them on their campus.

So far, the WSJ implies that it is unknown as to whether Google will make its own network but it seems like a certainty to me. Interestingly, Google applied a fair amount of pressure to the U. S. Government before this auction and succeeded certain conditions being placed on it. The idea is, that anyone who wins spectrum in this auction has to make their network open to other companies. I don't really know what that means but it is interesting. Now some people say Google may feel that they should be in the auction, having pressured the government and gotten their way on this.

Others say they will be afraid to alienate their telecommunications partners, but this seems pretty ridiculous to me. In addition, many people think Google will not be smart enough to put together a network, also highly unlikely. In addition, there are fears of dispersion of management focus. Usually, as I have repeatedly mentioned on this blog (Wal-Mart and others) -- I support the concept of maintaining management focus and oppose efforts that seem to dissipate it. However, in this case, I have a feeling that Google will be able to succeed in this venture without dropping the ball on search engines and advertising on the Internet.

It is Google's time; they are seizing the moment.