So... What Can Google Do To Promote Real Competition In Broadband Internet Access (By Promoting Broadband Wireless Internet Access)?
(Part 2 of 2; Part 1 - http://www.bwianews.com/2007/05/how_google_coul.html)
Very broadly, I think that Google should leverage three of its key strengths to promote Broadband Wireless Internet Access and the license-exempt model of spectrum allocation.
First is Google's ability to organize existing research and actual deployments of a very diverse subject; in this case, Broadband Wireless Internet Access and the use of license-exempt spectrum. Second is Google's ability to do research and development in targeted areas that are relevant to its mission, and I think that for Google to truly rise to its ultimate potential, it needs truly competitive Broadband Internet Access to be widely available, especially in the US. Third is for Google to use its enormous financial resources to encourage deployment of Broadband Wireless Internet Access using license-exempt spectrum.
From a recent talk I attended, I think I have some insight into Google's apparent reluctance to "delve more deeply" into Broadband Wireless Internet Access. Google's core competency is being able to extract maximum utilization of existing, commodity systems to support its core mission. So, Google does not make its own servers... disks... racks... Ethernet controllers... routers... fiber backhaul... etc. It (seems) reluctant even to specify what it wants to see in the evolution of these items, instead (again, seemingly) choosing to follow where the technology leads.
But Broadband Wireless is different from those commodity items, for which there is a vibrant, healthy, intensely competitive marketplace. Broadband Wireless Internet Access, especially use of license-exempt spectrum isn't to the point of being a vibrant, healthy, intensely competitive marketplace - yet. Telephony has its champions, fiber has its champions, cable has its champions, wireless telephony (cellular) has its champions, and even satellite has its champions. I cannot think of a current champion for Broadband Wireless Internet Access that has the power to truly effect change, especially a champion with the right motivations - that the most important mission for Broadband Wireless Internet Access is to make competitive, unrestricted Broadband Internet Access available to everyone. I think Google could, and should, become a champion of Broadband Wireless Internet Access using license-exempt spectrum. And here's how they could do that.
1) Google Research On Broadband Wireless Internet Access
Instead of "weighing in" on the 700 MHz auctions, Google should be (and apparently is,
at least in a limited way) "weighing in" on "Television White Space"
- allowing secondary use of unused television broadcast channels for
Broadband Internet Access.
The success and rapid evolution of Wi-Fi (which is only one particular use or mode of license-exempt spectrum) amply demonstrates the
power of license-exempt spectrum. One criticism of Wi-Fi is that "it's
not everywhere" like cellular. That's a legitimate criticism at this
moment, but Wi-Fi is evolving frighteningly fast and in some areas such
as some corporate and college campuses, Wi-Fi is "everywhere"... enough.
How... and more importantly, why license-exempt spectrum works isn't
yet widely understood despite more than two decades of use in the US.
(Seminars on my thesis - "The Darwinian Effect of License-exempt Wireless" can be arranged - contact me
if interested.) It's only recognized, grudgingly, that license-exempt
spectrum allocation does in fact work... but most "experts" posit that
license-exempt spectrum allocation shouldn't work in wide-area networks, and certainly won't work in the near future, citing The Tragedy Of The Commons, that everyone can use license-exempt spectrum, exploit it, and pollute it, with no consequence.
An in-depth, well-funded, "apply some of the best brains" research project that looks at the "big picture" of Broadband Wireless Internet Access using license-exempt spectrum would yield some surprising results. Much of this type of research to date has been (too) narrowly applied, such as how to best allocate spectrum via auctions, academic research that doesn't take into account the historical record of how much has been accomplished previously and not truly considering how much could be done (for example, restricting research to Wi-Fi), or too-narrowly-directed development such as vendors enhancing their respective product lines.
Google could help and promote progress in Broadband Wireless Internet Access using license-exempt spectrum with initiatives such as 802.22 (a cognitive radio-based PHY/MAC/air interface for use by license-exempt devices on a non-interfering basis in spectrum that is allocated to the TV Broadcast Service), 802.11s ("standardized" mesh networking for Wi-Fi), and the nascent version of WiMAX that will use the license-exempt 5.8 GHz band.
Historically, Google's research efforts have been conducted by its personnel, often working on their "20% time". But, what if Google were to either broaden its research in Broadband Wireless Internet Access to include non-Google personnel, or to bring personnel with expertise in Broadband Wireless Internet Access into Google? To be fair, Google has done some targeted research projects and investments, notably its Mountain View, California city-wide Wi-Fi network and its investment in Meraki.
2) Google Organization Of Existing Research And Practice Of Broadband Wireless Internet Access.
Google could establish a Google Labs project (preferably more than one) that would study Broadband Wireless Internet Access in ways similar to Google Scholar and Google Patent Search
including original research, advanced indexing of publicly available
information including university research, and creation of white papers on
various aspects of Broadband Wireless Internet Access authored by Google personnel or under contract to Google.
Simply being able to find reliable, complete, impartial information about Broadband Wireless Internet Access - deployments, technology, business models, etc. that isn't encumbered by vendor hype and spin or industry association's aggressive promotional hype would go a long way towards making Broadband Wireless Internet Access more widely used and accepted, and understood.
3. Google Should Form A Venture Capital Fund With A Mission To Provide Funding To Non-Incumbent Broadband Wireless Internet Access Service Providers.
As discussed, there is no shortage, whatsoever, of the ability to provide Broadband Wireless Internet Access in many deployment scenarios, network topologies, technologies, and business models. What is too often missing is the ability for such providers to obtain capital. The complaint I hear most often from Broadband Wireless Service Providers about obtaining working capital is that their preferred sources of capital such as banks simply do not understand Broadband Wireless Internet Access - it's not cellular, it's not Wi-Fi, and they simply don't understand the business model of an Internet Service Provider using wireless. This "disconnect" is even more apparent with Broadband Wireless Service Providers that are using license-exempt spectrum because of fears of interference. (It is very difficult to explain to a banker that interference is just an engineering problem that can be minimized or eliminated through careful choice of systems, proper network design, and good engineering practices.)
The second-most oft-heard complaint I hear from Broadband Wireless Internet Access Service Providers is that although there are a few sources of capital that are "enlightened" about Broadband Wireless Internet Access, terms are often onerous (demanding majority control of the company) or are encumbered in some onerous way (for example, Intel's venture capital investments in wireless are now being directed solely towards promoting WiMAX).
Evidence of the success of such a fund can be found in the success of the US Government's Department of Agriculture (USDA) Rural Utilities Service (RUS) loans and grants for deploying Broadband Internet Access. The RUS program has enabled a number of small Broadband Wireless Internet Access Service Providers to enlarge their service areas, provide services to customers that could otherwise not afford Broadband Internet Access, and upgrade systems to provide better, more reliable services. I
Google's enormous capital resources make it possible for Google to create an enlightened source of a venture capital fund with a mission of encouraging the deployment of Broadband Wireless Internet Access, with the following guidelines:
- Priority is given to Broadband Wireless Internet Access Service Providers operating in geographic areas where there is little or no direct competition for Broadband Internet Access with incumbent Broadband Internet Service Providers such as cable and telephony companies.
- Funded entities (commercial or non-commercial) must agree to generally adhere to "Network Neutrality Principles" and not arbitrarily block ports or applications, arbitrarily prioritize traffic, etc. on their network
- Funded entities should understand and embrace the synergistic nature of non-commercial Broadband Internet Access initiatives such as Metropolitan Wi-Fi networks and user-built networks, and that there is a role for both commercial and non-commercial Broadband Internet Access
- Funded entities must operate their business and network in a professional, commercial manner, with "reasonable" billing systems, management systems, and making use of wireless systems that are fully compliant with current regulations
- Funded entities that use license-exempt spectrum agree to attempt to arbitrate disputes about spectrum usage and interference issues directly (coordination) rather than resorting to destructive practices (jamming) and non-productive legal maneuvering.
The formation of a Google Broadband Wireless Venture Fund would enormously benefit companies like Extend America, a small Broadband Wireless Internet Access Service Provider in Bismarck, North Dakota. In many cases, Extend America is the only available Broadband Internet Access in its service area, yet must compete with well-funded telephone and cable television incumbents within the city of Bismarck. There are thousands of examples of companies such as Extend America quietly providing Broadband Internet Access to many areas where the incumbents deign not to serve, or providing the only effective competition to what would otherwise be a defacto monopoly for Broadband Internet Access.
By Steve Stroh
This article is Copyright © 2007 by Steve Stroh.
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