Google completing the Circle?

Google Inc, hopes to re-write the way mobile phone market is used and operated, by announcing yesterday its entrance into the bidding for the 700-megahertz spectrum. This has become available due to broadcasters switching from analog to digital networks. One of the key features is that it has very high penetration rates, including the ability to go through walls -- a key attribute for wireless.

Google said it plans to formally file its application to participate in the highly anticipated auction on Monday. "We believe it's important to put our money where our principles are," Chief Executive Eric Schmidt said in a statement. "Consumers deserve more competition and innovation than they have in today's wireless world."

Sitting on around 13$ billion dollars of cash as of end of September, it may have to spend a good proportion of it to win. It seems at this stage Google has chosen to go it alone and shoulder the cost, but hasn't ruled out working with partners in the future.

Although some people seem confused by Google's direction, the benefits in my opinion are clear, both for the consumer and for Google. The bullied U.S consumers have always been locked into the handset they use, the network it operates on, and the software it runs on, with no compatibility between each, restricting the expansion of the internet usage via mobile phones. Were Google to win or lose, it's a win win situation for the consumer as Google was instrumental in getting the FCC to adopt so-called "open access rules" That means whoever wins the auction, be it Verizon, AT&T or another operator, must open up its network and let users download games, video and music applications. Already Google has thought of this and it's new developer platform, dubbed Android, has started producing applications ready to go .

What's in it for Google? As a company, Google already has the ability to target consumers in many different countries, languages, and times via it's Adwords and Double Click advertising network. Now, imagine that city or town targeted on your mobile following you as you change from city to city. Mobile-phone advertising is set to grow more than fivefold to $11.4 billion in 2011 from $2.17 billion this year, according to Informa Plc, a London-based research firm.

What you're likely to get over the next few years is a complete change in way Americans use their mobile phones. If you really want to see the uses for mobile phones on a totally flexible network, check out DoCoMo in Japan, you can almost do everything except take a bath. Google will help bring about this long overdue change just as it has done on the internet.