Will Google and Apple partner for upcoming FCC auctions?


With Google, Inc. (NASDAQ: GOOG) now saying that it will indeed participate in January's FCC bandwidth auctions, one has to wonder which other non-telecom companies may throw their own hats into the ring. Google, who makes a low-key presence known while it plans to dominate the world's information distribution, may try to trump the establishes, bloated telecom carriers and bring its services directly to customers. In a sense, though, there's another company that would probably love to do that as well -- Apple, Inc. (NASDAQ: AAPL).

In fact, it's been said as much by Bob Cringely that Apple will be joining Google in bidding for some wireless airwaves come January. The two companies make a rather neat pair. After all, Google CEO Eric Schmidt does sit on the Apple board of directors.

While Apple is all about closed product ecosystems that work exceedingly well and are simple to use for all customers, Google operates in a completely open ecosystem that encourages direct customer interaction over a "walled garden" approach. In a sense, Apple and Google operate different business models. But, when it comes to taking their collective products direct to the customer, the two companies see eye-to-eye.


Therein lies what Apple may really be after -- a slice of airwaves that does not need a bloated, national wireless carrier like AT& T, Inc.(NYSE:T), any customer two-year contracts at $60/month or any partner hassles. AT&T's CEO Randall Stephenson may have underestimated Jobs, as many partners do. This time, though Apple has a mighty powerful ally: Google.

Will Apple use some of the airwaves (if it wins them) to have all iPhones use VoIP (Voice over Internet Protocol) to make voice calls and surf the net and -- over time -- de-emphasize the AT&T network it currently relies on for each iPhone in the U.S.? Perhaps. If so, Jobs will have burned the telecom industry just like it has the music industry. It's a brave new world out there though, and it will be exceedingly fun to watch what happens.
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Last updated: February 10, 2012: 03:21 PM

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