Google recently exited the FCC's 700 Mhz spectrum auction without winning anything but gaining much. The tech giant persuaded the FCC to open up the wireless networks and won big without having to spend almost $5 billion on licenses. I never thought Google wanted to build out a wireless network, and chooses instead to deliver ads and applications to other operators.
I was interested to read yesterday about Google's further lean on the FCC to open up soon-to-be-unused broadcast spectrum as the U.S. converts to digital TV. Google wants access to these "white spaces" to begin using them to manage a nationwide WiFi network -- free, unlicensed and able to reach much farther than WiFi can today.
I've written previously about WiMAX and its suitability for broadband wireless in foreign markets. Companies like Alvarion (NASDAQ: ALVR) are busy closing lots of deals abroad. I think Google's efforts, if successful, make this new-fangled network idea more feasible. WiMAX has its proponents and detractors. Regardless of which technology ultimately becomes the platform, Google will have positioned itself as a neutral service provider into which it can deploy an advertising platform via its much vaunted Android system, rumored to launch this summer.
Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author is long GOOG and ALVR stock.
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