Apple Considers Buying A Piece of the Airwaves

by: Matt Stoller

Mon Sep 10, 2007 at 23:33


As Iraq burns, lots of other stuff is going on in policy-land.  For instance, the propaganda campaign against a free and open internet has heated up.  Here's the Washington Post's economics columnist, Steven Pearlstein, on net neutrality.

Perhaps this is the kind of economic illiteracy we should expect from people who get their information from "The Daily Show" and the Daily Kos. But isn't it time for the rest of us to move on and acknowledge that the days of the online free lunch are over?

Of course, what's actually happening is that Comcast is randomly cutting off paying customers for downloading 'too much' without telling them what the download limit is.  Fortunately, shills like Pearlstein may soon become irrelevant in this fight, as Apple is considering making a game-changing move in our communications infrastructure.  Steve Jobs is eyeing a piece of the spectrum we fought for earlier this year and helped set partially free. 

Matt Stoller :: Apple Considers Buying A Piece of the Airwaves
The company has $14B in cash (reserve price for the spectrum is $4.6B), is looking for a way to get around the carriers, and likes to control the user experience from end-to-end.  Certainly it must annoy Jobs to no end that his beautiful products must operate on such a shitty set of networks.  Apple may even partner with  Google; Eric Schmidt, Google's CEO, is on the Apple board.  I don't know if Apple will make their network open; certainly it's less certain to do so than Google, though probably more likely to do so than, say, Verizon.

Still, it's probable that several Silicon Valley companies will bid, including but not limited to Google.  Should one of them win the spectrum and build out an open network, this increases dramatically the changes of an overall win on net neutrality.  Once we get real competition in wireless broadband, game set match for the worst of the cable and telecom nonsense.  We'll still have a lot of work to do, but the darkest scenarios will never come to pass.

After all, net neutrality is really just a regulatory solution to a lack of competition in broadband markets.  If you introduce real competition, there's less of a problem with net neutrality anymore.  Art Brodsky in his latest amazing column compared the choices you get in this country, which usually boils down to two providers at most, such as Verizon or Comcast, to the choices you get in a country like England that has a sane policy of 'open access' for its internet infrastructure.

Here's a spreadsheet of all the choices you get in England.


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oh please! (0.00 / 0)
please please please let Google and Apple buy that spectrum!  that would soooooo kick-ass!

-jason The UpTake

That's Not A Spreadsheet, It's A Form Of Torture (0.00 / 0)
And I don't give a damn what Abu Gonzales says, I'm sure it's forbidden by the Geneva Conventions.

"You know what they say -- those of us who fail history... doomed to repeat it in summer school." -- Buffy The Vampire Slayer, Season 6, Episode 3

Apple != Open (0.00 / 0)
If Apple buys a chunk of the spectrum, you can be sure they won't let the rabble trample there for free.

Remember what happened to the Apple computer hardware clones after Jobs returned? And iPhone: designed to not allow third party software. Jobs is about control - he's not going to let the kids on his lawn. They might degrade the experience for the (dearly) paying customers.


Notes on UK pricing on spreadsheet (0.00 / 0)
At first glance I thought the figures in the UK spreadsheet were in dollars (I'm an Ugly American) but I quickly realized my error. One pound is equal to US$2.02 so just double the figures to get rough U.S. pricing.

John McCain

pool funds (0.00 / 0)
It's interesting to note that Google and Microsoft were part of a group that submitted a white space hopping transceiver to the FCC for testing recently (it was rejected... G and M say it was a defective test unit).

What I think would be interesting is if companies like Google, Microsoft, Apple, Cisco and maybe even companies like Motorola, Nokia, Samsung etc formed a consortium to pool money to buy a huge slice of this spectrum. The incumbent handset companies have to make different, crippled versions of their handsets for each carrier.  Apple, Microsoft and Cisco would surely like to take wireless internet to the next level without dealing with gatekeepers like the wireless carriers.  Google, Yahoo, MSN, .Mac and AOL certainly don't want to be cornered into a wireless protection racket (that's a nice website you got there... it would be a shame if none of our customers were allowed to go to it).

And those are just the people I can imagine off the top of my head.  The consumer electronics/PC industry has deep pockets... it's just a hundred pockets against the telco's 3.







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