Case Analysis 4: Google’s attempt to but into wireless via 700MHz Spectrum Auction
TM583
12/09/2012

Why did Google make this move? What do they hope to accomplish?
Google made this move because they wan to compete with the other companies and become innovated. Google has most been known for their website and maps and now, they want to be known for more. “Google interest in the spectrum came after AT&T and other larger broadband providers expressed interest in recent years in getting web-based businesses to pay more for their customers’ use of the broadband networks.”(http://www.cio.com/article/160601/Google_to_Bid_in_700MHz_Spectrum_Auction) Google wanted control of the Internet experience on the device that hosted it. If they got the wireless spectrum, they could control how much the consumer would decide to pay or not pay for their service. However, since they put a bid in for the wireless spectrum, they wanted to do the same thing on their network. The 700MHz spectrum will travel far making it perfect for the wireless industry.

How does Google support for Open Access fit into Google’s plans?
“Google has said it would bid on the 700MHz spectrum only if the FCC guarantees certain open-access principles; including open access for companies wanting to buy wireless capacity wholesale.” (http://news.cnet.com/Googles-battle-for-wireless-spectrum---page-2/2008-1039_3-6199374-2.html) Open Access for the 700MHz spectrum can be lay down “four freedom” 1.) Open applications: The same freedoms found on the Internet to download software, content, or services 2.) Open devices: Devices must access any network consumers want. 3.) Open services: Fairness in wholesaling use of the spectrum to third parties 4.) Open networks: Internet-type rules for connecting networks together.
All this idealism has a practical political point. Google aims to break the cellular oligopoly that has slowed the U.S. wireless industry throughout this decade. Anyone who has dealt with AT&T, Sprint, T-Mobile or Verizon as a customer well understands how non-Internet “wireless Internet” access has become. Since their wireless oligopoly is their primary source of profits, a successful move by Google could also force AT&T and Verizon to compete in the wired space, freeing more bits on their current networks, which are now being hoarded for pay TV services. Taking down the telcos gives service providers, especially Google, a more level playing field. It ends the network neutrality debate as well, without the need for government interference.

It looks like Google wants to get into wireless, yet wireless is not one of Google’s core competencies. What should Google do about this?
Since Google may not be fully aware of the risks of taking on a somewhat new add-on, it may not be such a bad idea to bring in someone from outside the corporation that knows the ropes. “Obviously operating your own network is one way to circumnavigate any incumbent wireless stranglehold on your content or ad delivery. Given that running a wireless network might be outside their core competency, the company would probably bring in a build and operations partner, or lease the spectrum to another company with the obvious understanding that Google content and services would be king.” (http://www.dslreports.com/shownews/Google-Planning-To-Bid-In-700Mhz-Auction-89511)

Apply as many TCOs as you can to Google’s attempt to buy into wireless.
I believe that this Case Analysis covers TCOs C, D, and E. It covers C (Given an organizational and industry context, identify the core technological competencies of the organization.) because there is the identification of what Google does and wireless is not fully involved. It covers D (Given an organizational context, develop a plan to increase the innovation capabilities of the organization both through collaboration strategies and internal innovation) because Google wishes to extend to wireless connections (innovations) and may need to reach out for outside help. And lastly, it covers E (Given information about a company’s industry about a company’s industry and organization, formulate a technological innovation strategy through its new product development strategy.) because Google has began taking steps in order to reach having wireless connections.