Google’s attempt to buy into wireless via the 700 MHz spectrum auction was an attempt to capture the 700 MHz band. The band had opened up because in 2009 the Federal Communications Commission had 1999 wireless licenses to bid on (Scribd, 2015). Out of this 700 MHz band, the most desirable spectrum was the “C Block”. This was a group of 12 provincial networks that could be combined in order to have a 50 state network (Scribd, 2015)
The reason Google was motivated to buy into the 700 MHz spectrum auction was to expand its portfolio (Scribd, 2015). Google is experiencing tremendous growth with its search engines along with its wireless applications, and wireless networks. Getting into the wireless market would really give Google a serious chance of competing with other major wireless network providers.
Google’s plan supports open access, and that is appealing to Google. Since Google originated as an internet search engine tool it has become the most popular search engine. When people want to look something up on the internet, the first thing he or she does is “Google it,” and the search results appear within seconds. Therefore, customers who use Google all the time as their primary search engine are familiar with the way that the Google applications work. Google’s mobile applications are incredibly popular, and every new wireless device has “Google Play Store” on it from which the device operator can choose just about any application imaginable to download.
It is much more practical to bring the PC like feel to the mobile phone device, and that is what the customers want (Scribd, 2015). They want familiarity and uniformity in all of Google’s applications and once Google develops the technology and software for this endeavour, it must be designed to sync with the other Google applications. This may be a bit of a hurdle, but nothing that Google cannot handle. Google has proven that it is one of the most dynamic and forward thinking internet and technology companies in the world. Therefore, buying into the wireless market is excellent for both Google and its customers. The reason for this is because many customers have been disenfranchised with the fact that the current mobile carriers can dictate what phone the person uses, what type of software is on the phone, etc. (Scribd, 2015) . Customers want everything that is easy to access, and using the open access fit works well for Google.
Google is amazing in online advertising. That is Google’s core competency, and Google should find a current wireless network provider to merge with, particularly a brand name wireless carrier like Verizon, or Sprint. TCOs that can be applied to the Google situation are several. First of all, Google already has customers, and with its strength in online advertising, Google can be successful in the wireless network arena (Scribd 2015). As stated earlier, people are looking for ease of access, and a general universal, standard way to use mobile devices and PCs in the same way. Buying into the 700 MHz spectrum auction is the perfect way for Google to capture a brand new wireless market.
The key point to take home from Google’s bid to buy into wireless is that this is a great opportunity since the spectrum has opened up after the analog network for the television industry retired (Scribd, 2015). All of that spectrum was freed, and with Google’s muscle and in collaboration with a another prominent and powerful wireless company like Verizon, Sprint, AT&T, T-Mobile or any of those carriers will be major shift toward satisfying customer needs, and those needs are simple access and across the board compatibility with the same applications on their mobile phones, their laptops, and their other wireless devices.
The above answer was given without prior knowledge of Google’s Project Fi. In fact, Google did combine with a major cellular provider; it partnered with Sprint and T-Mobile for this Project Fi (Eadicicco, 2015). The description of this project Fi is basically a faster way to access Wi-Fi from your mobile phone. If you are using Google’s Project Fi then you can benefit from the encrypted protection that Google provides to protect your data and personal information (Eadicicco, 2015). Google charges $20 a month which covers text, talk and international calling. As far as the data, customers pay a flat rate of $10 per gigabyte (Eadicicco, 2015). The great thing about this new project that Google has with the partnering with T Mobile and Sprint is that Google is getting the name recognition of its own plus it is collaborating with Sprint and T-Mobile (Eadicicco, 2015). Google plans to provide a transparent way for customers to make inexpensive cellular calls. However, there is one glitch. You can only use this application called Project Fi if you have a Google Nexus 6 phone (Eadicicco, 2015).
Google’s move to get into wireless even though wireless is not one of Google’s core competencies, is a wonderful and has been a successful idea. Google is getting into a dynamic industry and it had the opportunity to buy into the 700 MHz spectrum auction in 2009 after analog was retired for television (Scribd, 2015). The open access plan supports Google’s idea in regards to implementing its own software with the ability to control the amount of data that a customer uses, and offering a reasonably priced wireless plan, as was described earlier that is affordable and very competitive with the major players in the wireless industry.
- Eadicicco, L. (2015). This is Google’s new wireless phone service: Project Fi. Business Insider. Retrieved 16 August 2015, from http://www.businessinsider.com/google-wireless-phone-service-2015-4
- Scribd,. (2015). TM583 Case Analysis 4 – Google. Retrieved 16 August 2015, from https://www.scribd.com/doc/122492085/TM583-Case-Analysis-4-Google