Google showing "signs of arrogance"

FORTUNE MAGAZINE has penned an article which suggests that Google is going the way of Microsoft and becoming too arrogant over the recent FCC auction of radio spectrum.

The search engine outfit lobbied hard in Washington to dictate terms on the auction so that it can take its profitable targeted advertising beyond PCs and inject it into any other medium it can find. Its goal appears to be cellphones, Fortune said.

Google promised the FCC it would bid at least $4.6 billion to purchase spectrum rights, but only if the FCC met all of its terms.

It told the regulator that it must ensure that all networks should be "open platforms." Punters should be able to use any device, networks should support standard software like Internet browsers and e-mail, network operators would be required to lease some capacity to other providers and it would all have to be mutually compatible.

As Fortune points out, this would make the phone network the same as the Internet. While this sounds like a good idea, it will go down like a bucket of cold sick with the US telcos.

Google seriously expects them to stump up billions for wireless frequencies and then be told that they have no control of them.

Not only would this reduce the value of any spectrum sale, the only one who would make money on it is Google's advertising business. But Google lobbying has forced the FCC to compromise and allow at least open devices and software. The FCC drew the line at leasing and forced compatibility.

Fortune is amazed that Google seemed to have the pulling power to even get that far with the FCC, but is even more stunned that the search engine outfit is not interested in compromise and wants to fight to get its other conditions on the table.

While a long term goal of open networks is probably good for consumers, the outfit is getting so arrogant that it could hack off everyone.

More here. µ