You are here

Online Giants: Put up or shut up!

The WSJ's article "Spectrum for Sale" today highlights today the competitiveness of the broadband market and makes a mockery of the online giants' allegation of a permanent "broadband duopoly."

What is glaring here is that apparently the online giants: Google, Yahoo, Microsoft, eBay and Amazon, are not bidding for this "beachfront-property-like" national wireless spectrum. The online giants have the wherewithal individually or collectively to outbid anyone to win this spectrum and become a broadband provider.

The online giants are whining to anyone that will listen that broadband isn't competitive. HELLO! online giants. The Government is hosting a very open and public competitive auction for outstanding national wireless broadband spectrum. Noone is treating you unfairly. No corporate conspriacy is out to get you. Your huge cash hoard is welcome to be spent here. The welcome mat is out! You just have to be willing to pay more than other companies. That's competition right?

Why aren't you bidding? First, could be becuase you have alleged a "broadbad duopoly" and it would be embarassing to try and explain the hypocrisy of saying its a broadband duopoly and then bidding to compete with the DSL and Cable companies? Second could it be that you believe you will be successful in regulating broadband and thus why would you want to throw your money away investing in a lousy regulated commodity business? Third, could it be that you are afraid to compete in a converged world? Finally, could it be that you don't want to lower your profits by investing in capital facilities?

Google, Yahoo, Microsoft, eBay, and Amazon, stop alleging its a broadband duopoly if you all are not willing to step up and compete. It looks a lot like you all are trying to have your cake and eat it too. Be free of regulation yourselves but regulate your competitors.