Google needs telco partner for 700MHz bid, say analysts

GOOGLE NEEDS TELCO PARTNER FOR 700MHZ BID, SAYS ANALYSTS
[SOURCE: InfoWorld, AUTHOR: Peter Sayer, IDG News Service]
Analysts are skeptical of the benefit to Google of going it alone in the Federal Communications Commission's upcoming 700 Mhz spectrum auction. "Wireless spectrum and network management are nowhere near Google's core competency. Its competence is in one market, online advertising," said Emma Mohr McClune, principal analyst with Current Analysis. That sentiment was echoed by Jan Dawson, a vice president at market analyst Ovum. "Anything other than search at the minute seems like a move in the wrong direction," said Dawson. With its focus on search-based advertising, Google's financial metrics are "phenomenally better" than those that even the best mobile network operators can achieve, he said. "You have to wonder why a company would diversify into a market like that." Google's goal may not be to make money from operating the network, though: It could simply be a lever to get its applications into the hands of more mobile phone owners. It has already taken steps in this direction, offering versions of its Web applications for Apple's iPhone, and launching the Open Handset Alliance to promote its Android open software stack for mobile devices. "The commonality between all those moves is to get their services running on mobile devices," said Adam Leach of Ovum. Building a wireless network is too much for Google to attempt alone, say the analysts: The company should seek partners as it has in the handset market. A carrier partner "is essential to building out and running a network. The core issue is the operations and maintenance of this new network.... It is not trivial to build and run a telecommunications company," said Bill Ho, senior analyst at Current Analysis. If Google is to partner with an operator, it could choose Sprint, some analysts suggested. The two have already agreed to partner on WiMax services.
http://www.infoworld.com/article/07/11/16/Google-needs-telco-partner-for-700MHz-bid-say-analysts_1.html