Feb. 6 – AT&T officially announced plans to implement a nationwide 3G
wireless network in an effort to “cast a wider net for mobile customers this year.” This announcement comes on the heels of the FCC approving AT&T’s purchase 12 mhz of the 700-mhz nationwide spectrum for a cost of $2.5 billion. This portion is not part of the FCC auction currently in progress.
This news seems to be marginal in light of current events at the FCC. While this announcement paves the way for AT&T to establish the infrastructure for the eagerly-anticipated 3G iphone, the 700-mhz auction currently in progress deserves strict attention with respect to the future of 3G wireless networks (click here for the auctions current status). It is important not to lose sight of the 3G’s big-picture development.
The 3G iphone will help undoubtedly help AT&T’s push into the third-generation wireless market. There are many players, however, on the verge of entering the lucrative and innovative field. New market entrants hope to shake up traditional business models, including that of AT&T. For example, Google’s commitment of $4+ billion to a portion of the open-network portion of the C-Block, coupled with commitments to an open-platform cellular operating system, could quickly drive the direction of 3G wireless services.
This is not to ignore the partnership between Apple and AT&T and its effect on the smart phone/wireless broadband market. They have contributed substantial improvement and awareness to future wireless capabilities. This is not to say, however, that this partnership will swallow the 3G wireless movement whole. We have yet to see what companies, such as Verizon and Sprint, have planned to attempt dominance in the wireless market. Stay tuned.
