Why cable companies, Google are eyeing wireless spectrum

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These cable operators see wireless as a way to distribute their content to mobile devices. They also see potential in wireless to let customers interact with existing services in a new way. For example, Comcast and Time Warner have already talked about allowing users to program their DVRs remotely from their cell phones. Owning wireless spectrum would provide cable operators more control over how they distribute content and develop mobile services for their customers, said Lin.

For Google, the licensed spectrum would provide an alternative way to reach its users. Google is already building Wi-Fi networks in cities such as San Francisco and Mountain View, Calif., in an effort to circumvent existing carriers' access networks.

"A lot of the new players looking to get in on these auctions could be motivated by the current legislation and policy coming out of Washington that doesn't seem to favor Net neutrality principals," Lin said, referring to proposals that would prohibit network operators from prioritizing Internet content and services on their systems.

Phone companies such as Verizon and AT&T have said they're considering charging content owners and distributors, such as Google, additional fees to carry high-bandwidth content over their networks. For Google and other Internet companies, this could spell big trouble. Building their own access network to bypass these carriers could alleviate the problem, Lin said.

A pricey asset
But obtaining licensed spectrum won't be cheap. Though spectrum licenses may have sold for hundreds of millions of dollars a few years ago, as bankrupt wireless companies scrambled to deal with the dot-com bust, the spectrum currently up for auction is expected to go for billions. Many analysts are predicting the 1,122 available licenses could generate between $8 billion and $15 billion for the government.

The 1.7GHz and 2.1GHz bands of spectrum are particularly good for wireless technologies because they allow for a wide array to be used, including next-generation cellular, and new IP-based technologies like WiMax, which can support peak data speeds of about 20Mbps, with average user data rates between 1Mbps and 4Mbps. WiMax can also transmit data from a few hundred feet in densely populated areas to between 1 and 2 miles in suburban areas.

"Because WiMax is able to use more-powerful radios, it can blanket a city and penetrate walls fairly easily," Lin said. "Getting Wi-Fi to work inside as well as outside has been a significant problem for many cities deploying Wi-Fi citywide."

Though WiMax is still in its early days, Intel, along with several corporate sponsors, is working with the wireless industry to drive deployment of WiMax networks. Sprint Nextel is already considering the technology as its top choice for its 4G wireless technology using its 2.5GHz spectrum.

Still, some experts say cable operators or other potential contenders for the new spectrum may not use WiMax, but instead other cellular technologies.

"WiMax technology is still too immature," Mathias said. "I think it's much more likely that the companies bidding for spectrum will use a combination of cellular and Wi-Fi technologies."

CNET News.com's Elinor Mills contributed to this article.

[victor_kahn]

work around = throwing in the towel

as much as i would love to see google start offering wireless
internet service (more competition is better for consumers) i
would rather see net neutrality strictly codified and enforced by
the fcc and ftc...

cause if the teleco's monopolize internet access without net
neutrality...

bring on the tiered internet (pay more for voip and bittorrent,
packet sniffing and other tomfoolery)

but it would be nice to see nationwide free wi-fi
access...brought to you by google...

the sound of teleco's pooping their pants would be audible from
space.