The (Potential) Opening Of The Wireless Market
BusinessWeek, Monday, November 26, 2007 11:15 AM
BusinessWeek profiles a trio of would-be wholesale wireless network providers that aim to compete with the likes of Google, Apple and the giant telecoms in the upcoming wireless spectrum auction this January. TerreStar, Frontline and Mobile Satellite Ventures have all been in talks with the Federal Communications Commission about their intention to bid in the upcoming auction, which could fetch as much as $15 billion, according to BusinessWeek. The auction will be one of the most closely scrutinized in FCC history, because of the rules requiring that one portion of the spectrum be free to be leased wholesale and the devices operating under the network be open.
Currently, large cellular carriers like AT&T operate closed wireless networks, which is why handset makers like Apple have to strike exclusive agreements with them instead of selling their products to an open market. But that could now change, thanks to the new auction rules. The three wireless startups aim to win the open network auction and then lease the spectrum to virtually anyone--without exercising control over the content--for cheaper prices than the big telecoms currently charge. "Anyone" includes resellers, mobile virtual network operators, hardware makers that want to sell direct to consumers without using a service provider, and even the carriers themselves. Google, for example, could lease their spectrum to provide nationwide access to its new mobile initiative, Android. While Frontline, TerreStar and Mobile Satellite Ventures intend to enter the wholesale business, they also plan to offer mobile plans of their own.
Read the whole story at BusinessWeek »
Currently, large cellular carriers like AT&T operate closed wireless networks, which is why handset makers like Apple have to strike exclusive agreements with them instead of selling their products to an open market. But that could now change, thanks to the new auction rules. The three wireless startups aim to win the open network auction and then lease the spectrum to virtually anyone--without exercising control over the content--for cheaper prices than the big telecoms currently charge. "Anyone" includes resellers, mobile virtual network operators, hardware makers that want to sell direct to consumers without using a service provider, and even the carriers themselves. Google, for example, could lease their spectrum to provide nationwide access to its new mobile initiative, Android. While Frontline, TerreStar and Mobile Satellite Ventures intend to enter the wholesale business, they also plan to offer mobile plans of their own.
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