Is Google the real winner in the FCC auction?

Finally, the most anticipated FCC auction for 700 MHz wireless spectrum is over. Verizon and AT&T have acquired a substantial number of licenses. As I promised in my last post, I have to tell you what this means to Google.

First things first. We all know Google is clever. When people went wild with their speculations about the auction, Eric Schmidt would have probably smirked. The reason being – Google probably never intended to win the auction. In fact, even before the auction, it got what it wanted.

The open access theory was formulated by Google and FCC made it clear that the winner of the spectrum should allow their users to choose any handset they want and run any application they want on their mobile phones. In other words, even if Verizon or any other company wins the auction, they will not be able to make their subscribers use a particular mobile phone with a particular application. This leaves a gap large enough for Google to bring in its Android supported devices. Clever, isn’t it?

As we already discussed, the costs involved in running a network are huge and Google never actually intended to do that. Instead, it will make money, irrespective of who wins the auction, through mobile advertising.

Now, at the end of the auction, Google actually didn’t win any license. But instead, it made Verizon and AT&T pay big bucks for the licenses. Now, Google will be happy to introduce its Android based mobile phones with tons of applications, which people will be happy to use. So, without spending big bucks for licenses in the auction, Google will be able to make money – through advertising.

Now, is that brilliant or what?

Categories: Cell Phone Advertising, Google, All things mobile phones.

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