Google Enters the Auction for the Wireless Web, But Why?

Posted at December 2, 2007

Take a guess how many wireless subscribers there are in the United States alone? Can you believe 250 million according to www.ctia.org. OK so we know there is a market here. We know that the web is available via wireless devices. We know that Google operates on a "more open platform" than most companies i.e. ATT, Verizon. Having read Google’s interest in making a play for the 700 MHz (megahertz) wireless spectrum on e has to ask what is the real "intent" behind this? Why are they getting into the wireless space when they are a "search" company to some, and an "advertising and media company" to others?

Does Google know something we don’t know? Will all access to the web in a few years be wireless instead of wireline? Will Google be able to place their Adwords Ad in front of consumers at the point of decision, like a football stadium concession stand, or a restaurant as you are walking down the street in NYC? How will Google monetize what looks like a minimum of a $4 Billion bid? They know something we don’t know because the answers do not seem to show up in the articles I have been reading. In my limited research I think this article at E-Commerce Times explains it the best.

I expect Larry and Sergey to take more risks in the technology space because as they know if you can harness the power of the consumer you can monetize the consumer hence there can be a huge payoff, the bigger the risk the bigger the payoff potential. However, there is also potential for risk when you leave your core competency and test new businesses. The question still persists. How will Google make money with the purchase?