Alright, I’m getting pretty sick of starting every post with “sorry I haven’t posted in a while” and what’s worse is that I’m heading out of town and likely won’t post anything new for another eight days. So damn, I’ve already started to slide. But tell you what: I’m going to make up for it! . . . eventually. Not yet though.
Today is a topic about which I’m greatly excited. There will be a few crazy terms, a few insane numbers, and a lot of speculation, but one thing’s for sure: this is a topic that will change your life.
The FCC’s Auction 73: the 700 megahertz spectrum.
Let’s get into it. First off, what is the 700mhz spectrum? This is the frequency on which old TV signal is transferred. You know the way you can hook up an antennae to a TV and have a few channels pop up? That’s the 700mhz spectrum.
Why is it for sale? Because the Federal Communications Commission (FCC) ruled that all TV signals must be digital by February 17, 2009 - leaving all old analog signals completely unused.
Why would someone want this spectrum? It’s already deployed all throughout the US and has capabilities for insanely fast data transfer. Now here’s where the fun part comes in: fast data transfer speeds in vast parts of America = much, much more than analog TV. This means practically unlimited mobile implications. Cell phones can operate on this spectrum and they would be able to do hundreds (to thousands) of times the download/upload capacity of current generation devices. I’ll get to more of this in a minute.
Who would want this? Everyone. Right now the top contenders are: Verizon (to expand its already strong rural cell coverage and remain the “largest network in blah blah blah”), AT&T (to expand its fairly crappy rural coverage, have even “a couple of bars in a some places” and increase the capabilities of pretty junky smartphones), Frontline Wireless (a startup run by an old-school Apple exec), and … GOOGLE.
Why would Google want the 700mhz Spectrum? To deploy Android, its mobile phone platform. See, Google’s android will be on all networks- this will be an operating system (like Windows or OSX), but for phones- and if Google wins the auction then they control the standards which will be set for any Android phones. If Android can perform perfectly only on the fastest network then Google ends up owning anyone that wants to use its platform… which is everyone. Even if AT&T has a phone running Android, it will need a slice of fast-data-pie to truly utilize the device, so they’ll be forced to turn to the big GOOG for help.
How much money are we talking about? Loads. Absolute loads of money. The reserve price for all five chunks (this is an entire story in itself…) is well over $10 Billion. The main chunk the biggies are fighting for (C chunk) has a reserve of $4.8B alone. As I predicted in my 2008 Predictions Post, Google will win with a bid around $8B. I’m not sure now if my predicted bid price will be met, but if Google buys another chunk… I might be right on.
So what? Why should you actually care?
Short (and confusing) answer: the FCC has ruled that part of this spectrum MUST be “open access”, meaning that “Locked” cell phones, those tied directly to a carrier, are obsolete. Any manufacturer will be able to make a device that runs on this network. No more choosing GSM or CDMA, with an entirely open network, manufacturers can make insane devices that will run on with incredibly fast data speeds… for everyone almost everywhere in America.
Sit with me for a second here as I step back in time (to a few decades before I was born…) and I’ll quote Popular Science’s take on this:
“The last time the government made a change like this was 40 years ago, when the FCC forced telephone companies to open up their lines to third-party products. It wasn’t until after the landline system went open-access that products like answering machines, fax machines and modems hit the market.“
My takeaway on all this: opening up the network means more advancements. This will be a paradigm shift in the way we use mobile gadgets. Imagine having connection speeds beyond WiFi, anywhere you go, inside or outside. Voice over IP will be simple. Video Phones will stream perfectly. TV on your mobile device will not just be lag-free, it will load instantaneously. Internet: everywhere. Internet enabled devices: everything.
Finally: when? This Thursday and Friday. The biggy telcos (and google) will be battling it out in a fairly traditional auction format (add an online component though…) in hour long chunks of bidding, until Friday afternoon when there will be one victor (for each chunk).
But honestly: I don’t care what company ends up bidding the most, all that matters is that it will be the consumers that win this round. And I just can’t wait to see the gadgets that come out of all this! For more reading… heavy and nerdy, check out the FCC site
Enjoy! . . . see you in a week.
I’ve been working on a fun CES post aiming to discuss the cool gadgetry flowing out of the Vegas Convention Center, but something caught my attention that I just had to write about immediately… Xerox’s new logo. So what is a Web 2.0 log? Is it an interactive logo? A logo that accepts comments? Or has its own RSS feed? The answer is that a Web 2.0 logo is a catchy term that some design person used to make an easy sale…


