Amen. They need to present entry into the operator market as a credible threat to make things happen, but they won’t if they don’t absolutely have to (would drag them down in a big way).

Google’s perfect solution would be for all operators to offer open-platform devices, so they could run all their apps on them. They will try every option to get them there - partner with Clearwire/Sprint over WiMax, bid with Verizon on 700MHz, subsidize T-Mobile rollout of femtocells, etc.

In any case, this will be fun to watch.

As analysts like Blair Levin and crew at Stifel, Nicolaus have noted, Google gains great leverage in the upcoming auction by dropping hints but keeping its cards close to the vest. Come Dec. 3 some of the hands will have to be played, but remember this is a long process that could even change more if the Democrats win the Presidency in 2008 (and thereby control of the FCC).

Journalism, due to folks like these, gets a bad name.

I don’t get WSJ article. What’s new?

They keep printing same story every month!

700Mhz will allow Google and Partners to gain access to the Last Mile and direct access to the end user-which has limited their plans for domination of the Broadband distribution services space.

1) Google can get what it needs without buying/building an operator - What is Google after? Channels for advertising, closer relationship with users. they can get all they want by partnering with Sprint or another operator. that is the beauty of having 4 operators. You play one off the other and get what you want (e.g. Apple and AT&T). So, best option would be to partner and maybe buy a stake (like they did in AOL) if partnership without investment does not work

1) It is very very hard - An operator business is about managing capex, acquiring customers and reducing churn. Google has ZERO experience in all this. Google’s expertise is writing great software that is technologically very hard. An operator’s expertise is running operations and marketing. Two VERY different skills. Eric Schmidt would be a fool to think he can get both within one culture

3) Return on investment is much lower compared to its existing business. operator margins are low, capex is high and there are already entrenched competitors. Google’s ship needs to be tanking for them to justify a $10-$20B investment into an operator. As an investor, i see these as two separate businesses.

Thoughts?