700 MHz Spectrum: freedom at last

Finally...freedom! The FCC agrees with Google and will make the 700 MHz wireless spectrum open. In case this means absolutely nothing to you, let me explain. Currently, cell phone providers maintain complete control over their wireless spectrums. For example, if you want to use AT&T's cell phone network, you have to pay them for access. While we have grown accustomed to this, it does not have to be this way. Google has confirmed multiple times that if their terms are met, they will start the auction off with a bid of $4.6 billion dollars for the wireless spectrum. 

Now, this doesn't only apply to cell phones. I simply used that as an example of the current structure of the industry and the opportunity for change. This also relates to Internet. If Google (GOOG) wins the auction, a variety of free, ad-supported Internet options will most likely be introduced to the public.

Grasping the impact that this could potentially have is difficult. Just think about how the outcome of this auction could alter the entire economy. Suddenly, the bar would be raised and other companies would be forced to reform as well. Internet access could be absolutely free. This would not only be beneficial to the millions of existing Internet users; it would bring many millions more. If anyone could simply turn on their WiFi card and search for the Google network from anywhere in the country, it would be amazing. Commerce on the Internet would flourish as the millions of new users entered this virtual world for their first time. Hundreds of thousands of new websites would be created, the need for more jobs would be introduced, and overall this single auction would have a profound impact on the country, and even the world as a whole. Now that we've addressed the real-world effect that the 700 MHz spectrum could have on Internet, let's take a look at cell phones.

Imagine being able to purchase any 700 MHz-compatible cell phone that you wish, bringing it home, and being able to use it with the provider of your choice. This will inspire a great amount of pricing competition between companies like Verizon, Sprint, AT&T, and AllTel. Instead of having the ability to lock you in, wireless providers will actually have to offer good services at decent prices. That would explain why Verizon is openly against this plan. The FCC's guidelines stipulate that the winner of this auction must allow any device onto it.

Let's all keep up to date on this auction and thank the FCC for finally giving us, the consumers, a truly open and free wireless spectrum. As for Google's bid on it: let's see...free, ad-supported Internet and a completely open cell phone spectrum. Sounds good to me.