This Sony Ericsson mobile model TM506 supports AWS technology which Tmobile supports and is the first model to fully support AWS.
AWS spectrum could be used for media play by Google, Amazon and others
One of the more interesting areas of speculation is whether companies from the internet world will stop at influencing wireless behavior through partnerships with cellcos or license-exempt metrozones, or whether they will seek to become operators themselves and buy up spectrum.
There is a strong argument that vendors such as Intel or Cisco could invest in licenses to ensure the spectrum is controlled by forces friendly to their all-IP plans going a step further than the policy of Intel to finance more conventional spectrum acquirers, such as Clearwire or the UKs Pipex. The other likely non-traditional contenders in upcoming spectrum auctions could include public sector bodies and internet giants, notably Google.
There is growing talk that Google, perhaps working with other internet giants such as Amazon and eBay/Skype, will prepare a bid for the US auction this June of AWS spectrum in the paired 1710-1755MHz and 2110-2155MHz bands. This could potentially bring Microsoft into the market too.
Of course, Google has stoked such talk for over a year now with various indications that it might want to become a network owner from its acquisition of dark fiber to its entry to the metrozone sector. But the question remains why would it spend its $8.5bn cash mountain on wireless licenses and presumably network build-out, when it can partner with any operator it chooses? Intels interest would be clear to set valuable frequencies aside for WiMAX, by buying up licenses and probably working with an operator such as Clearwire. But Google does not need to go up in opposition to the major cellcos, it just needs to put itself in a sufficiently powerful position that it gains the best terms from them to expand its core business, and the maximum exposure for its adverts on all possible networks. Unlike Intel, that approach is technology neutral.
Google is already in a powerful position without needing to own its own network, because of the dominance of its platform in the internet world, one that the mobile carriers can no longer ignore behind their walled gardens. As they are forced to open up to the web, they are already knocking at the doors of the key players Google itself, MySpace, eBay and so on.
In the metrozone market, which it sees as a way to generate massive volumes of internet traffic, and therefore response to its adverts, it has backed away from early plans to own and operate a network, and has had the good sense to tie up with an existing operator, EarthLink. The same approach will pay off far better in the cellular world than trying to take on Cingular and TMobile head-to-head, especially at a time when Google faces a possible concerted effort by eBay with Yahoo or Microsoft to challenge its position in the internet market. The search engine giant may have seen its revenue grow 79% in its just announced first quarter, with profit up 60%, but it could still do without risking such shiny figures by entering the debt-laden, capexintensive world of network operators.
Some telcos are waiting for a challenge from the internet players however. It wouldnt shock me to find a range of unusual bidders in the upcoming spectrum auctions. Experience has shown that some companies havent needed a well thought-out business plan to bid, commented Jim Cicconi, AT&T senior vice president for legislative affairs.
This article originally ran in Wireless Watch, a publication of Rethink Research. Reproduced with permission. For information on the weekly Wireless Watch Newsletter and other Rethink Research products and services, click here.
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