Google's White-Space Fixation

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Enter Larry Page. During his May 22 speech to the New America Foundation, a think tank where Google CEO Eric Schmidt is chairman-elect, Page used a wireless microphone to downplay interference concerns. "I don't think there's any technical credence to this at all," he said.

Better Broadband Access

Page also argued that unlicensed white spaces offer a way for the U.S. to catch up with the rest of the world in broadband access. For the second year running, the U.S. ranked 15th among the 30 members of the Organization for Economic Cooperation & Development in terms of broadband availability, a recent survey found (BusinessWeek.com, 5/22/08). Today, 10% of Americans still don't have access to DSL or cable broadband, according to consultancy Parks Associates.

Google and others also see white spaces as a way to reignite interest in municipal Wi-Fi networks, many of which are struggling or even being turned off due to financial and service-quality problems. Because the white-space spectrum is more robust, networks using those frequencies would require a fourth to a fifth as many Wi-Fi transmitters to cover an area, according to Michael Calabrese, vice-president of the New America Foundation. Thus, network construction would cost less, while the wireless connections would be speedier.

Should white spaces be approved for unlicensed use, Page hinted, Google might even build some networks for cities with its own funds. "We have money to invest," he said. "We'd probably do it if we could do it on a reasonable scale." Google currently operates a Wi-Fi network in Mountain View, Calif., used by 40,000 people.

Google Has Plenty to Gain

Yet Google has hinted at major wireless incursions before, only to hang by the sidelines. Before the last FCC auction, the Internet search company pushed hard for open-access rules requiring mobile operators to allow more devices and services on their networks. Google vowed to participate in the auction if such rules were adopted, but once they were, the company made what appeared to be just a token bid before withdrawing.

That said, Google does have plenty to gain from open access to white spaces. White spaces are critical to the adoption of the Android operating system for cell phones that Google spearheaded last year with hopes that some Android-based devices would connect with that unlicensed spectrum in addition to traditional cellular networks.

And since Google makes most of its money from displaying ads alongside its search results and on other Web pages, more ubiquitous access to the Internet could mean more business. "If we have 10% better (broadband) connectivity in the U.S., it translates into 10% more revenues for us," Page said.

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.