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What is Google really up to with the Android initiative and 700MHz bid? PDF Print E-mail
Tuesday, February 12, 2008

How the 700MHz bid is related to the "net neutrality" brouhaha. Why Google's 700Mhz plans could become the tech news of 2008, and the impact beyond. Is there is an elephant in the room?


Let's start with the question of why Google is involved in the Android initiative in the first place.  That is, why do they care whether the cell phone companies maintain control of cellular phones, or someone else (e.g. Apple) gains control?  Why is Google motivated to keep that open?  Several important reasons which we'll delve into.    And something the media has largely missed - the Android initiative opens another front in the war between Microsoft and Google - an Operating System front.  The mobile computing operating system front.  Microsoft has invested heavily in "Windows Mobile" (it's current name) for over ten years, with substantial, but still limited success.  Google is doing something much more interesting.

About a year ago, the telephone companies made a big "power play" move on Google and other internet players, by attempting to lobby Congress into passing new laws which would allow them to charge different content providers based upon their own criteria, instead of the current relatively neutral system upon which the internet is based.  And of course, they called it "net neutrality" to confuse the uninformed.  This may turn out to be one of the worst things that they have ever done, as it has struck like a lightening rod in the boardrooms of internet companies.  And Google is doing something about it with Android and the 700MHz initiative.  It's not the only reason they're pushing those two significant initiatives, but it certainly puts some fuel on the fire.

The biggest question remains: what is the big strategic reason that Google is engaged in these two huge initiatives, which at first glance are quite different from their core business of internet search and advertising?  Simple.  Open, unimpeded, low cost mobile computing done right, stands to open the internet up to a whole new scale and level of usage worldwide.  And that means more profits for Google.  Plus, it's a cool thing to do - it's where things are headed.  


 
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