Through Clearwire, an affiliated company in which Sprint owns a 51 percent stake, Sprint is now offering the faster data service on laptops in Baltimore, Portland, Ore., and other cities for a total population of eight million people.

By the end of the year, the service will be in 25 markets, including Chicago, Philadelphia and Dallas. A year after that, it hopes to reach about a third of the country’s population, including New York and San Francisco.

Verizon Wireless will not start to unveil its 4G network until the middle of next year. And AT&T will come out with its upgrade a year later, although its 3G technology can be upgraded to offer much faster speeds than the system used by Sprint and Verizon.

But Sprint’s 4G push comes with huge technical and financial risks. The company is using a technology called WiMax, which was initially developed by Intel to offer wireless service over large distances to computers in homes and offices, not to mobile phones.

The rest of the wireless industry has settled on a global standard called L.T.E. (for Long Term Evolution). While it is still in development, some experts say L.T.E. will be able to handle more traffic than WiMax, and the L.T.E. systems planned by AT&T and Verizon would use radio frequencies that penetrate buildings better than those used by Clearwire.

There aren’t a lot of details yet on how that $6 billion would be given out, but it doesn’t seem to encompass the tax breaks phone and cable companies were lobbying for. Even so, the wireless industry was cheering Thursday morning because a summary of the spending released by House Democrats calls for the money to be used on “broadband and wireless grants.”

Wireless companies were concerned that the money would be earmarked for cable and phone companies providing fiber to the home.

On Wednesday, an Obama adviser who’s been in charge of the broadband stimulus package indicated that industry and tech expectations about the broadband part of the package had gotten a bit out of control.

“The broadband piece of the Obama agenda is not going to be done solely in the economic recovery package,” said Blair Levin, a telecom analyst and former FCC chief of staff who’s been advising the campaign on how to structure its broadband plan. He was speaking at a tech conference on Capitol Hill.

Read the full article in Wall Street Journal here.

Martin is expected to put his proposal for the free Internet network on the agency’s Dec. 18 meeting agenda despite criticism by wireless operators like T-Mobile, who say using the spectrum could interfere with their new high-speed data network. T-Mobile, a unit of Germany’s Deutsche Telecom, spent $4 billion for nearby spectrum and has disputed a report by the FCC that rejected the firm’s concerns of interference.

For Martin, however, the plan could dispel criticism he’s taken over the country’s fall in international broadband Internet rankings during his tenure and leave him with a legacy of potentially bringing more competition into the wireless industry. The wireless phone market is dominated by AT&T and Verizon Wireless and much smaller providers, Sprint Nextel and T-Mobile.

Read the full story in Washington Post here.

Ottawa opens up wireless industry to more competition

The Conservative government on Wednesday paved the way for new cellphone companies by announcing new rules for an auction of radio airwaves designed to spur competition in the wireless industry.

About 40 per cent of the spectrum will be reserved for new entrants, with the remainder open to all bidders, including Canada’s big three providers — Rogers, Bell and Telus. The government will also mandate roaming agreements, which will force existing carriers to share their networks with newcomers for five years, plus another five if the new entrants can build up their own networks nationally. If a new carrier is unable to reach a “reasonable” roaming agreement with an existing provider, an outside arbitrator will be brought in, Industry Canada said.

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For more than two years, a large group of engineers at Google have been working in secret on a mobile-phone project.

As word of their efforts has trickled out, expectations in the tech world for what has been called the Google phone, or GPhone, have risen, the way they do for Apple loyalists before a speech by Steve Jobs.

But the GPhone is not likely to be the second coming of the iPhone and Google’s goals are very different from Apple’s.

Google wants to extend its dominance of online advertising to the mobile internet, a small market today but one that is expected to grow rapidly. It hopes to persuade wireless carriers and mobile-phone makers to offer phones based on its software, according to people briefed on the project. The cost of those phones may be partly subsidised by advertising that appears on their screens.

Google is expected to unveil the fruit of its mobile efforts later this year, and phones based on its technology could be available next year.

Some analysts say that the Google project’s effect on the wireless industry is not likely to be as profound, at least initially, as that of Apple’s iPhone, whose revolutionary look and features have redefined consumer expectations for mobile phones.

“The iPhone was a milestone in terms of how people use a mobile device,” says Karsten Weide, an analyst with IDC. “The GPhone, if it does come out, will help Google with distribution for their online services.”

At the core of Google’s phone efforts is an operating system for mobile phones that will be based on open-source Linux software, according to industry executives familiar with the project.

In addition, Google is expected to develop mobile versions of its applications that go well beyond the mobile search and map software it offers today. Those applications may include a web browser to run on mobile phones.

While Google has built phone prototypes to test its software and show off its technology to manufacturers, the company is not likely to make the phones itself, according to analysts.

In short, Google is not creating a gadget to rival the iPhone, but rather creating software that will be an alternative to Windows Mobile from Microsoft and other operating systems, which are built into phones sold by many manufacturers. And unlike Microsoft, Google is not expected to charge phone makers a licensing fee for the software.

The essential point is that Google’s strategy is to lead the creation of an open-source competitor to Windows Mobile, according to one industry executive, who did not want his name used because his company has had contacts with Google. They will put it in the open-source world and take the economics out of the Windows Mobile business.

Some believe another major goal of the phone project is to loosen the control of carriers over the software and services that are available on their networks.

“Google’s agenda is to disaggregate carriers,” says Dan Olschwang, the chief executive of JumpTap, a start-up that provides search and advertising services to several mobile-phone operators.

Google declined to comment on any specifics of its mobile-phone initiative. But its chief executive, Eric Schmidt, has said several times that the mobile-phone market presented the largest growth opportunity for Google. “We have a large investment in mobile phones and mobile-phone platform applications,” he says.

Industry analysts say that Google, which has little experience with complex hardware, faces significant challenges.

“Running a website and a search engine is one thing,” says Weide of IDC. “But developing a phone is a whole different game. It will not be easy for them.”

Weide adds that Google’s impact on the industry will depend to a large extent on its ability to sign deals with wireless carriers that distribute hundreds of millions of phones each year and often control what software and services run on them.

Some carriers, especially in the United States, are likely to give Google a cool reception. Companies such as Verizon Wireless and AT&T have spent billions of dollars building and upgrading their networks, establishing relationships with customers, subsidising handsets and creating their own mobile internet portals. Now they want to make sure those investments pay off, in part, through mobile advertising, and they see Google and other search engines, which are after the same ad dollars, as competitors.

As a result, most carriers in the US have chosen to shun the major search engines for now. Instead, they have promoted the search engines and ad systems of small technology companies such as JumpTap and Medio Systems, whose services they can stamp with their own brands.

Most carriers declined to comment on Google’s plans. But Arun Sarin, chief executive of Britain’s Vodafone Group, which offers the Google service on its phones, says it is not clear what compelling functions Google will offer that are not already available.

“What is it that is missing in life that they are going to fulfil?” Sarin says. “It is not a no-brainer. You can reach Google already through a number of devices. You don’t need a Google phone to do that.”

Google’s desire to loosen the carriers’ control over their networks has hardly been a secret. The company recently lobbied the Federal Communications Commission to impose rules on any carrier that wins a coming auction for valuable wireless spectrum. The rules, which the FCC adopted despite opposition from Verizon and others, require that the network using a portion of that spectrum be open to any handset and software applications from any company.

Google says it is considering bidding for some of that spectrum. But regardless of who wins it, phones based on Google’s software will be able to take advantage of it.Google’s lobbying, as well as its work on a phone software platform that will be open to other applications, represents an effort to bring to the mobile internet the dynamics of the PC-oriented internet, which is free of control by network operators. Google is hoping that it can beat competitors in an open environment.

The mobile-phone project at Google is built in part around Android, a small mobile software company it acquired in 2005. An Android co-founder, Andy Rubin, had founded Danger, which created the popular T-Mobile Sidekick smart phone.

Rubin works at Google’s headquarters in Mountain View, but another part of Google’s team is reported to be in Boston, where Android’s co-founder, Rich Miner, another veteran of the mobile-phone industry, is based.

Some analysts say there are no guarantees that Google will be able to replicate its online success in the mobile world.

“The wireless market does not have the same global scale and scope efficiencies, nor the lack of transactional friction, of software on the internet,” says Scott Cleland, a telecommunications industry analyst who recently testified before the US Senate against Google’s proposed acquisition of DoubleClick.”

It is a completely different world and completely different set of economics,” says Cleland, who has opposed Google on a number of policy issues.

Microsoft, whose mobile operating system has been available for years, has distribution agreements with 48 handset makers and 160 carriers around the world. Still, only 12 million phones sold this year will be based on Microsoft’s software, giving it 10 per cent of the smart-phone market, according to IDC.

Microsoft declined to comment on potential competition from Google.”The market is huge and our partners are really motivated to bring Windows Mobile phones to market,” says Doug Smith, director for marketing of Microsoft’s mobile communications business.

Mahesh Veerina, founder and chief executive of Celunite, which makes mobile-phone software based on Linux, says Google’s offering is likely to be attractive to small carriers, which may see it as a competitive weapon.

But if Google-powered phones prove to be a hit with consumers, other carriers may feel pressure to follow suit, says Richard Doherty, director for the Envisioneering Group, a consulting firm.

“No one wants to be the last carrier to endorse Google,” he says.

Google wants to extend its dominance of online advertising to the mobile Internet, a small market today, but one that is expected to grow rapidly. It hopes to persuade wireless carriers and mobile phone makers to offer phones based on its software, according to people briefed on the project. The cost of those phones may be partly subsidized by advertising that appears on their screens.

Google is expected to unveil the fruit of its mobile efforts later this year, and phones based on its technology could be available next year.

Some analysts say that the Google project’s affect on the wireless industry is not likely to be as profound, at least initially, as that of Apple’s iPhone, whose revolutionary look and features have redefined consumer expectations for mobile phones.

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Google Pushes for Rules to Aid Wireless Plans – New York Times

“When you go to Best Buy to buy a TV, they don’t ask whether you have cable or satellite,” said Blair Levin, a former F.C.C. official who is now an analyst at Stifel Nicolaus & Company. “When you buy a computer, they don’t ask what kind of Internet service you have, and the computer can run any application or service. That doesn’t exist in the wireless world. That’s where Google wants to go with this auction.”

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