Case 4 – Google: Research Google's Attempt to Buy Into Wireless Via the 700 Mhz Spectrum Auction.
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Case 4 – Google: Research Google’s attempt to buy into wireless via the 700 MHz Spectrum Auction.
1. Why did Google making this move?
Google’s Motivation to bid into the wireless marketplace through the use of the 700MHz Spectrum Auction was the opportunity to develop possibly a 50 state network “The FCC is auctioning 1,099 wireless licenses in the 700 MHz band, but the most attractive spectrum for many bidders is the “C-block” of 12 regional licenses that may be combined to create a 50-state network.” (Reiter, 2008) This new product development would allow Google to become a cellular network operator. This market includes firms such as AT&T and Verizon, Google would not only compete with these …show more content…
Another option is looking toward some of Google’s partnerships and ownerships and collecting resources from their wide variety of talent to develop a team tasked with developing the new competencies needed to make the new business venture successful. Similar to Google spearheading the Open Handset Alliance’s Android mobile platform, this new venture will need to break boundaries and establish Google as a premiere wireless network. “This situation has crippled consumers' ability to use the Internet on their mobile devices, compared to how they use it on their PCs. Google executives say their aim is to bring the PC-style of Internet openness to the mobile world so that users have more choice in mobile services and applications, as well as price.” (Mills, 2007) Google has the opportunity to develop the competencies for emerging as a successful wireless network yet they have to take the risk of investing into this opportunity. Google has the customer support and the finances to go for it, and it doesn’t look like a bad choice.
Mills, E. (2007, 11 30). Cnet news. Retrieved 12 5, 2010, from Google versus the Telcoms: http://news.cnet.com/Google-versus-the-telecoms/2100-1039_3-6220909.html
Reiter, A. (2008, 2 5). Internet Evolution. Retrieved 12 5, 2010, from Internet Evolution: