Friday, March 21, 2008

Mass vs. Volume or Factors in Displacement

So the FCC has finally been able to presumptively sell off the soon to be unused analog television frequencies for over 19 billion dollars.  Unfortunately the spectrum went mostly to one company. When the FCC announced the sale of the frequencies it hailed the action as a dawn of a new age of innovative communications. The fact is, it took a classic chess move on the part of Google just to insure 'open access for other vendors.  (Google convinced the FCC to accept the concept of open access if a minimum bid was received. Google then bid the minimum, made quite noise about being interested in expanding to telecom then watched as the bidding frenzy ensued.



What does this mean for the custom AV industry? For starters if may mean that Sprint and its WiMax may have lost the mobile content war, for I am sure that Verizon has plans afoot to use the acquired frequency spectrum for more then just better coverage.  Content delivery is where the future profits reside.   Verizon has stated that they intend to honor the open access clause but past closed market practices lend me to believe that they will now work to overturn the clause and elbow out all others.  It could very well be a case of  Volume vs Mass. I have this image of  dropping ice cubes in a cup of water, when the ice fully melts the level in the cup does not change-(i am excluding factors such as evaporation and condensation).



NPR had the best general coverage on this FCC spectrum sale



FCC Auctions Off Airwaves



http://www.npr.org/templates/story/story.php?storyId=88690020&ft=1&f=1019



Key Part of the Wireless Spectrum Goes Unused



http://www.npr.org/templates/story/story.php?storyId=88650396&ft=1&f=1019



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