Two recent news reports suggest Google Inc. (NASDAQ: GOOG) continues laying the foundation for world domination.
The first, from Commsday.com, claims that Google is partnering with other carriers to lay a new multi-terabit communications cable on the floor of the Pacific Ocean, connecting the Americas with the Far East. The "Unity Cable" would compete with another new cable in development by Telekom Maylasia, the Asia America Gateway cable. According to the article, a proprietary cable could provide Google a large cost advantage over competitors such as Yahoo! Inc. (NASDAQ: YHOO), although a Level 3 executive recently expressed a concern that the rapid growth in cable networks might result in a "capacity bubble."
The second report, from The Guardian, suggests that Google is prepared to bid for a portion of the U.K.'s mobile phone radio spectrum if the government follows through on plans to reclaim these frequencies from Vodafone Group PLC (NYSE: VOD) and Telefonica SA's (NYSE: TEF) O2 network. Those who are convinced that Google is planning its own Googaphone will see this, as well as the company's interest in a similar upcoming U.S. frequency auction, as evidence that the phone is part of an overall strategy to dominate the coming ubiquitous wireless internet world.
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Reader Comments (Page 1 of 1)
12-12-2007 @ 11:58PM
Serg said...
In my view, Google is making a big mistake with the fiber cable investment. Most undersea cable investments today are an unprofitable venture that don't make any financial sense for companies with no telecom experience because termination license agreements to land in those countries is what costs the most money. Google would be better off leasing private line circuits from a consortium once the cable is completed.