What does Verizon’s victory in the auction mean to Vodafone?

The impact of the FCC’s 700 MHz auction is amazing. I mean, who would have ever thought that the results of FCC auction could have an impact on the stockholders of Vodafone? Confused? Read on.

Verizon Wireless, in case you don’t know, is a joint venture between Verizon Communications and Vodafone. Now, as we all know, Verizon has won a major chunk of the wireless spectrum in the recently concluded auction. It paid close to an astronomical $5 billion for the licenses it acquired and it has got reflected in the stock prices of Vodafone.

Investec, a prominent South African bank, has advised its clients to sell Vodafone shares as it predicts its dividend payments to be delayed. Now, I’m not a stock market analyst or something. In fact, I have no idea of anything remotely associated with stock market. Could someone explain this?

Categories: All things mobile phones.

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FCC auction for wireless spectrum - More speculations

You might have probably heard about the hugely popular FCC Auction for wireless spectrum, which is undoubtedly one of the most talked about issues for quite some time now. If you haven’t got a clue as to what it is, I’d suggest you to read this piece and then continue with this post.

The news about FCC auction takes a new twist and turn every now and then and it’s nothing short of a Sidney Sheldon novel when it comes to surprises and speculations. First, everyone unanimously suggested that Google will go on to win the auction, no matter how big the prize is. A little while later, when Verizon and AT&T showed great interest in the auction, Verizon was considered the favorite. Considering the rift between Verizon and Google earlier, everyone thought Verizon would be keen to win the auction.

A little while later, there was another conspiracy theory going on – that Google might bid to lose in the auction. The reason stated was that the winner needs to open up his network to his competitors anyway, so Google might lose the auction and still get a piece of the spectrum. Now, it’s another theory. This time, it’s even more surprising.

The costs involved in building a wireless network and operating it will be enormous. In fact, it is said that it would take around $15 billion and three years to build a new network. So, rumor has it that Google might actually take part in the auction to hike the price and would lose voluntarily at the last moment, only to see the winner buy the slice of the spectrum at an enormous price. After some time, when the winning company has piled on a lot of debt, Google might actually hold the upper hand and bargain for whatever it wants.

All I can say is – wow. These speculations would make even the best of novelists ashamed of themselves. Sometimes, truth, as they say, is stranger than fiction. So, let’s keep our eyes wide open and get prepared for the auction.

Categories: Google.

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Google in 2007 - A review

2007 was a great year for websites, newspapers, magazines, and blogs, thanks to Google. Simply because, Google was one of the biggest newsmakers of 2007. Everyone knew Google was working on something which could make it a top contender in the cellphone advertising market and guessed it would be the so-called Google Phone. But then, it turned out to be Google Android, a mobile platform, which made headlines all over the world.

Especially, with so much hype surrounding Apple iPhone, Google was forced to come up with something that would not just take the attention away from the iPhone, but also change the market once and for all. Google Android was the perfect answer and the announcement made big news in the market. There were so many reasons behind the market’s excitement – it was Linux based, it was open-source, and it came at a time when Google was aiming for the FCC Auction for wireless spectrum in Jan 2008.

I’ve already stated why Google Android could be the welcome change the market needed and I think it has enormous potential to become the most-used mobile platform all over the world. Especially, with the alliance Google formed with 30 plus big names in the industry, they made sure everyone took notice.

Earlier this year, Google made a proposal to Verizon Wireless to have its search application and other things incorporated into their mobile phone, but Verizon refused due to their difference of opinion with Google in terms of the advertising revenue. It was at this point of time that the market was going wild with speculations that Google might become a carrier and might come up with its own phone and all that jazz. Thankfully, Google quickly put an end to all the speculations with its Android.

Also, there were speculations in the market that Google might even bid to lose in the FCC Auction, as the winner (which could be Verizon) is required to open its network with the competitors anyway. But considering Google’s interest in 700 MHz wireless spectrum, I’m not too sure if Google would actually do such a thing.

This year, Google also came up with the beta version for Mobile AdSense which can be used in mobile sites. A lot of Google’s applications went mobile this year, including YouTube which got incorporated in Apple iPhone.

Google made news with its every move this year and I have no reason to believe that next year would be any different. We’ll have more news on Android and Google’s mobile applications, as it tries to expand its dominance further in the cellphone advertising market.

Categories: Google.

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FCC auction for wireless spectrum

I know a lot has been said about the FCC auction for wireless spectrum. I know some of you might be wondering why make such a big fuss about an auction. Government auctions are a dime a dozen, after all; so why so much of importance is being given to this particular auction? That’s your question; right? Well; here comes the answer.

First of all, it’s not an ordinary auction, to say the least. FCC auction for wireless spectrum is perhaps one of the biggest in terms revenue and the outcome of the auction could change the entire landscape (or should I say airscape?) of the wireless industry. The auction is likely to fetch a whopping $15 billion for the Federal Government and this alone has made so much of news in the market.

What’s up with the wireless spectrum anyway? You ask me? Well; imagine wireless spectrum as a congregation of roads. The FCC will decide who gets to use which road for transportation. Now imagine, you’d obviously love to get the biggest and the most accessible road of them all; wouldn’t you? Similarly; in the wireless spectrum, specific frequencies are allocated for specific purposes like TV, radio, cellphone, and other wireless services. In the FCC auction that we’re talking about, the frequency for cellphone operation will be auctioned. As you probably know, cellphone advertising and marketing is considered a huge industry and has the potential to rake in revenue like anything. So, if you are a carrier or a handset market, you’d love to have that huge pie of the wireless spectrum which will put you in an enviable position in the market; right? This is why the auction is being given so much of importance.

The auction is scheduled on January 24 and expectations are sky high right now. Some of the names which will take part in the auction include Google, Verizon, Vermont Telephone Company, AT&T, Guam Cellular & Paging, and hell; even an oil company, Chevron is taking part in the auction. Now can you imagine this auction’s importance? Also, FCC has strictly mentioned that it’s going to be an open access system, whereas the customer gets to choose the network and the handset he wants to use. Earlier, it was not the case - if you wanted to switch to another network, you had to change your mobile too, as different carriers supported different mobiles. With the open access system, it will no more be the case, as the customer will be able to choose the service provider and the handset he wants at his own discretion.

So, for all these reasons, the FCC auction for wireless spectrum is considered huge. It’s less than a month away and already the speculations are running wild. I have my wager on Google; what about you?

Categories: Google.

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