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Google As A Carrier. It’s Not A Question Of “If They Will”, But Rather “When They’ll Try”

CNNMoney published an interesting piece by David Goldman this morning entitled, Google: Your new phone carrier? In it, Goldman lays out what he sees as the preliminary steps Google has taken to become a wireless carrier themselves down the road. He also gives some reasons for why they would and would not want to do that. In my mind, the concept is much more straightforward. Goldman ends the title of his piece with a question mark — but it should be a period.

It’s not a question of “if” Google will try to become a carrier. It’s just a matter of “when” they’ll try to.

Now, to be clear, that doesn’t mean I think they’ll actually be able to become a carrier. The biggest hurdle there has nothing to do with the technology needed, the money needed, or the expertise. Rather, the major issue would be the government. Would they allow Google, already one of the biggest corporations in the United States, to enter a new area that could extend their control (particularly in the advertising space)? Probably not. Actually, I have a feeling it might have more to do with Verizon and AT&T lobbying dollars influencing the government to block Google in such a cause.

But again, Google will try. It may be a few years from now, but it’s inevitable.

Here’s the key blurb of the CNNMoney piece, far down:

It’s not likely in the immediate future. Google’s Android is the hottest item in the mobile market, and the company relies on carriers to adopt its software and drive customers to its search site.

But it’s a real possibility down the road. The Federal Communications Commission recently failed to enact strong Net neutrality rules for the wireless community. That leaves open the option for carriers to restrict their subscribers’ access to some of Google’s offerings.

Without the net neutrality safeguards in place, the carriers will make moves to restrict certain services down the road. YouTube is one example. Google Voice is probably another. There will likely be a dozen others.

Interestingly enough, it’s none other than Google who will share a big part of the blame for this happening. Not only did they leave Android so open so as to allow for the carriers to do whatever they want, but they also teamed up with none other than Verizon to dream up the current bogus non-rules the FCC just voted to adopt for wireless access.

But what if it is just a big “keep your friends close and your enemies closer” scenario? What if Google saw teaming up with Verizon as the only way to move at least part of the net neutrality debate forward (as Google CEO Eric Schmidt has more or less stated) and realized that it was inevitable that they’d be competing with them in wireless down the road? It can’t be ruled out. And at the very least, the partnership may be a bit of bet hedging — a way to ensure continued money-making just in case they can’t enter the wireless space down the road.

Remember that Google has done some sly manipulation of the space in the past. In 2008, they put up a huge bid to buy a portion of the wireless spectrum that the FCC was opening. But Google had no intention of actually winning with that bid. Instead, they bid just enough ($4.6 billion) to ensure that the open device and application rules would be put in place on the spectrum, no matter who won the rights to control it. And who won those rights? Verizon (and AT&T to a lesser extent).

While Google and the carriers may seem all buddy-buddy now, in the not-too-distant future, they will likely be at odds with one another. The reason will be that the carriers will begin restricting what Google thinks should be open. And Google will have to make some moves to open things up once again.

Rumors of Google buying one of the smaller U.S. carriers, namely Sprint, have been around since at least 2007. Those rumors pop up every year, and they will likely only intensify going forward. One issue there is that it would only solve the U.S. problem. Of course, given the state of carrier control in this country, it is likely the problem Google will want to solve first. The other bigger issue, again, is the government blocking such a purchase.

Instead, Google may simply try to buy up chunks of spectrum from others. Or build out their white space initiative, the so-called “WiFi on steroids“. Or maybe they’ll dream up some other new technology to try to end carrier dominance. This is the company behind self-driving cars, after all.

Remember, Google is already entering the ISP game with their fiber optic broadband test. Why? Because the state of broadband in this country is pretty piss poor thanks largely to de-facto regional monopolies in place. The next, and more important step is for them to take to the skies. And for largely the same reason. And Google will try to. It’s only a matter of time. I’m just worried that like most things they’re attempting these days, it will be easier said than done.

[photo: flickr/woodleywonderworks]

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As Testing Ramps Up, Glitch Launches A New Site And A Trippy New Trailer

Since we first reported on a company called Tiny Speck back in July of 2009, there has been a lot of interest in what they are working on. You see, it’s a company founded by a bunch of people who helped start Flickr, and their project, Glitch, is actually a return of sorts to Flickr’s gaming roots. Last February, we did an early preview of the game. And in August, we noted that testing was well underway. An update to Glitch today brings a brand new website and a new video to explain the game.

This new exposure comes after a weekend in which Glitch underwent its most extensive user testing yet. The game was open for some 74 hours over the weekend, and thousands of users (of the tens of thousands in the waiting line) were let into the game to try it out. The test looks like it was a successful one, and the new website says that the game is now on track for beta testing early next year, with a tentative launch also slated for early next year. The company promises that going forward, they’ll move all updates from their private alpha blog, to the company blog.

But the key to Glitch (if you can’t play it) is to see it in action. So check out the video below. Yes, it’s weird. Yes, it’s awesome.

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Foursquare Makes Its West Coast Office Official, Is Hiring

Mayor Gavin Newsom’s claim that Foursquare is a San Francisco startup just got a little bit more accurate. Foursquare, which has famously worked out of the Square offices here in SF for quite sometime, has finally bit the bullet and made its West Coast dalliance official today with a “We’re heading west!” blog post.

“In the past year, we had a major growth spurt: from about 100,000 to over 4.5 million users; from a single phone platform to six; from 50-person foursquare flashmobs to 1,000 person epic swarms; and we now have thousands of developers building on the the foursquare API. The biggest challenge: hiring fast enough to support that surge. Despite growing from 5 employees to 35, we can’t expand as quickly as we want.

So, to help attract the best talent in the world, we decided it’s time to open an outpost in San Francisco.”

The location based startup will not be moving from San Francisco Chronicle Building where it’s set up defacto shop since summer, and Square will be freeing up more room for the company to hire a full team of West Coast engineers in addition to its 35 current employees. Four employees already work on the West Coast include Tristan Walker, Holger Luedorf and two operations engineers. With $21.4M in funding led by Andreesen, Foursquare has definitely got room to grow.

Photo: niallkennedy

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Nexaria BC2 router supports iPhone tethering for some reason (video)

3G/4G Router That Supports Tethered iPhone

Posted: 21-Nov-2010 [Source: 3G Store]

[The Nexaira Business Class 2 3G/4G Router lets AT&T iPhone users create a WiFi HotSpot using an iPhone for $20 per month.]

Cary, IL -- 3Gstore.com and Nexaira are announcing the immediate availability of the new Nexaira Business Class 2 (BC2) 3G/4G Router that supports iPhone 4, iPhone 3GS and iPhone 3G tethering. Plug your iPhone into the Nexaira BC2 Router and you can instantly create a secure WiFi hotspot using the 3G connection from your phone. As an added bonus, the Nexaira BC2 Router will charge your iPhone while it is plugged in. 3Gstore.com is the exclusive distributor for Nexaira's iPhone tethering solution in the USA.

Unlike other iPhone tethering solutions, this method does not require you to jailbreak your iPhone, which can void your warranty. Simply add the appropriate data plan from AT&T's web site or the free MyWireless App and enable tethering on your iPhone (adds $20/month to your bill; can be disabled when you don't need it). Once tethering is enabled, connect your iPhone 3G, 3GS or iPhone 4 to the Nexaira BC2 Router via your iPhone USB cable and within a few seconds, your iPhone will indicate that it is in "Internet Tethering" mode. The BC2 router then serves as a WiFi hotspot that multiple WiFi-capable devices like the iPod Touch, iPad, laptop, and more can use to connect to the internet; ethernet devices can also connect via the router's LAN port. While using your iPhone as a modem, you can continue to make and receive calls as well as access all the applications that are installed on your iPhone, including send/receive email/text messaging or any other internet app.

"We are excited to partner with Nexaira and offer this exclusive feature for our customers," said Michael Ginsberg, President of 3Gstore.com. "Customers have been asking for this feature ever since tethering was officially supported by Apple last year."

The iPhone/Router tethering solution is ideal for a variety of situations:

Simple and cost-effective failover solution for home or work

Does your DSL, Cable or T1 line go down occasionally? What is your backup plan? Purchase a Nexaira BC2 Router and next time your internet goes down, you can be back up and running in a matter of seconds. Just plug your iPhone into your BC2 router and you are back online. No need to sign a 2-year contract and pay $60/mo for a data plan, simply enable or disable the tethering feature as needed and only pay when you need it.

Convenient WiFi hotspot for your home, hotel, business meeting or car

Keep the Nexaira BC2 in your briefcase and next time you need internet access on the go, you have everything you need. Open the MyWireless app and enable tethering, plug the iPhone into your BC2 Router and a few seconds later, you have a hotspot. The BC2 also provides one ethernet port, so if you have an ethernet-only device, just plug it into the router.

Affordable temporary/occasional mobile broadband option for travelers

Tethering your iPhone is a great alternative to expensive hotel WiFi, un-secured and unreliable free hotspots, or signing a 2-year contract for mobile broadband service that you only need from time to time. Pairing the tethered iPhone with the BC2 allows you to easily provide internet access to all of your devices wherever you need internet access, on your terms.

Allow iPad and iPod Touch internet access from your iPhone

On vacation and the kids have an iPad or iPod Touch? Plug your iPhone into the BC2 router and a few seconds later, all your iPads and iPod Touches can easily access the internet, even while traveling in a car.

International Customers with iPhones

As long as your carrier officially supports tethering, all you need is the Nexaira BC2 and international power adapter (sold separately) and you are ready to tether your iPhone and create a hotspot. 3Gstore.com ships to over 200 countries worldwide via FedEx.

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Regulators perturbed by Comcast's executive reshuffling, NBC Universal takeover to blame

By Darren Murph posted Nov 22nd 2010 6:35PM Hold your horses, Bubsy. While it looked like there were but a few Is to dot and Ts to cross before Comcast's takeover of NBC Universal was official, folks in high places are now shaking their heads at a recent decision by the carrier. As the story goes, Comcast and NBC Universal are still in talks with the government over the proposed takeover, and it seems that a few wires were crossed in recent days; Comcast decided to announce a new management slate for NBC Universal just a few days ago, despite the fact that the takeover hasn't actually been green-lit. According to an inside report over at The New York Times, one unnamed official in Washington had this to say: "For a deal this large, and one that hasn't been approved, Comcast's behavior is presumptuous and arrogant." Of course, it's not like this trigger-pulling in and of itself is reason for the whole deal to collapse, but it certainly won't make things any easier on either company. So much for taking on those new roles (and accompanying raises) prior to Turkey Day, huh?

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Netflix Finally Brings Streaming-Only Plan to U.S.

Americans have one less thing to envy about life in Canada starting today: Netflix is now offering its streaming-only plan in the U.S. As predicted last month, the plan costs $7.99 per month and allows for unlimited video on-demand. The pricing is exactly the same as the revised rate recently released for Hulu Plus.

While it was clear that Netflix streaming was popular, this news revealed just how crucial on-demand is to the future of the company. Jesse Becker, the Netflix VP of marketing, said:

“You might also wonder why we haven’t introduced a new plan that includes only DVDs by mail. The fact is that Netflix members are already watching more TV episodes and movies streamed instantly over the Internet than on DVDs, and we expect that trend to continue. Creating the best user experience that we can around watching instantly is how we’re spending the vast majority of our time and resources. Because of this, we are not creating any plans that are focused solely on DVDs by mail.”

To that point, Netflix has raised the prices of all of its unlimited DVD rental plans. The two most popular plans, which include one or two DVDs out at a time, increased by $1 each to $9.99, and $14.99, respectively. Rental plans including three to eight DVDs out at a time each had incremental increases, as represented in the chart.

Image courtesy of iStockphoto, CEFutcher

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