Strategic Management and Innovation

In: Computers and Technology

Submitted By Selama
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1. Why did Google make this move? What do hope to accomplish
Answer
Google made this move so that they could become innovative. Google wanted to be known for a broader scope of activity instead of just for web site and maps . “Google interest in the spectrum came after AT&T and other larger broad band provider expressed interest in recent years getting web base business to pay more fir their customer use of broad band network.” (http://www.cio.com/article/160601/Google_to_Bid_in_700MHz_Spectrum_Auction). Google wants monopoly over internet experience and the device that host it.
If they won the bid they could control sales for their services. Google wanted the same bid on their network. Due to the 700 MHz spectrum it was perfect for wireless industry as it could travel farther than others wireless network 2. How does Google support for open access fits into Google plans
Answer
“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). The four freedom laid down by Google was i. Use any application on any device they want ii. Other company would be able to license their spectrum at wholesale price iii. Limiting competitors iv. Isps would be able to interconnect freely to 700MHz network at any technical feasible point.
Base on oligopoly system the wireless industry has slowed down in the last decade. This has been evident with companies such as AT&T, Sprint, and Verizon just to name a few. With ownership of the 700MHz spectrum all other company would have to look to Google for services.…...

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