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bidding on the wireless spectrum


Jeff Wexler

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Apple has sold 1 million iPhones as of today, ahead of Steve Jobs' prediction of the end of September. One of the largest bidders in the upcoming sell off of the 700 mhz spectrum looks like it will be Google. CNBC in a story today said that Google and Apple are talking about extending and expanding their already very close ties. Do you think the rumoured "G-phone" may actually turn out to be an iPhone and could possibly Apple and Google have their own network (and we could all say goodbye to AT&T --- in 2 years, of course). Both Google and Apple have powerful brand and TONS OF CASH. All food for thought (either way we will still have to find a solution to our vanishing wireless mic spectrum!).

Regards,  Jeff Wexler

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summary of article as it appeared in Business Week:

"Businessweek reports that Apple has studied the implications of joining the FCC Wireless auction to be held on January 16th

The winners will get rights to use the spectrum that analog TV broadcasters are handing back to the government in 2009, given their mandated move to digital television.

....

Signals at the 700Mhz spectrum, for example, could provide far faster Internet access than today's cellular or even Wi-Fi networks, and the signals can easily pass through buildings and work glitch-free, even in lousy weather.

According to their sources, however, Apple is currently "leaning against participating" in the auction. With $14 billion in cash reserves, while Apple could easily afford participating in the auction, the logistics of running a "low-margin .... massive-scale network" could prove to be detrimental to Apple. This negative impact on Apple's margins and focus are seen as major reasons for Apple's reluctance to participate.

Winning its own piece of the spectrum, however, would provide Apple with the ability to offer its own wireless network service to devices such as the iPhone.

'Apple is the most anti-carrier company there is,' says the former Apple executive. 'They're probably already frustrated with AT&T. If they put a few billion behind this, they could build a kick-ass network.'

The article goes on to the possible implications of such a purchase, but feels it is quite unlikely.

Google has been expected to make a bid on the wireless auction."

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I'm crossing my fingers that the previously auctioned C block at 740-745MHz, which is pretty useable right now in the SF area, will remain largely unaffected, at least for a few more years.  Other blocks that are not up for auction in January (because they've already been auctioned) include:

710-722MHz

and little slivers around 758, 775, and 788

Potentially good news, if I understand it, is that the A,B, and E blocks may not operate on a widescale nationwide basis.

"The A, B, and E blocks make up 30MHz in total, but the licenses for these blocks will cover only small geographic areas. The idea is to make wireless spectrum available to regional or rural wireless operators that could not otherwise afford to bid on the national spectrum."

So far, I found this article had the best info about what's available, and the stipulations of use

http://arstechnica.com/news.ars/post/20070815-700mhz-auction-whats-really-up-for-grabs-and-why-it-wont-be-monopolized.html

Happy bidding... If we need an extra 20 bucks to fill out the coffers, count me in.

Brian

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  • 2 weeks later...

senator,

this meeting should be very interesting.

also,

a little side note, the sennheiser rep. who was speaking in the interview or article, (Volker ) was the guy who was hit at Nab 2 years ago by a drunk driver while walking across the street. if it is him (Volker) it's good to here from him on

such a important topic. apparently from the senn. reps here in the states, Volker is very influential and a important engineer for sennheiser.

later,

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