I also dont think the demands set by google were a brash mistake like this article suggests.

The general public is becoming more aware that the carrier's chokehold on them is stunting innovation and choice. The iPhone is a perfect example. When the iPhone was released, groves of people with existing contracts signed the 2yr AT&T contract anyway, but not without a feeling of bitterness. Everyone wants the Apple iPhone, not an AT&T phone. Everything AT&T about it is a downright annoyance.

Statements like the one made by Google over the spectrum restrictions reach the ears of the public. Google is saying: "We will stop the telcos from raping you over the coals if the FCC will accept our rules to help you, the end user, by giving you freedom of choice". I think now, more than ever before, people are standing up and demanding action like this. Google is shown as "good cop" who will help fight back the oppression that the telcos have imposed.

Regardless of the outcome of the 700Mhz auction, the carrier's restrictions will crumble, its just a matter of time. Just like Ma Bell and so many other examples in history, you can only hold back innovation and competition for so long. By making their stance known, Google is positioning themselves as the company who will be active to do things right, just like they have done in the internet space.

The issue at hand though is the importance of this spectrum in particular... Yes there are talks of utilizing the "white space" spectrums to get every inch out of available wireless freqencies (which Google is also interested in), but 700Mhz is the real meat. It is a BIG deal. Not only is it the last "prime real estate" that will likely come available in a long time, it is a lower frequency than the other wireless phone bands and therefore propagates better. Google owning this spectrum is far more important than internet search, and I know they realize it. I just hope they put their money where their mouth is because like the article suggests, now they have stirred up the bee hive by pissing off the carriers.

Yah, it all seems pretty paranoid. Talk of Facebook being a "walled-garden" really doesn't compare to what we have to deal with on mobile platforms. I heard on the radio someone mention the days of "phone rental", where there were the exact same concerns you hear today about security and control. But then it was monolithic AT&T saying only the three models of phones it designed could possibly be safe to use. Ridiculous.

Look at net neutrality. All it would take are a few telcos to decide to cripple bandwidth to and from google & googles adsense. This would scare off websites from adsense, make google slow and unusable, This would kill googles only real revenue source.

Maybe the whole spectrum thing is just a bargaining chip to use against the telcos.

"I doubt there's much the telcos can do to Google"

Read Andy Kessler's writings on the telcom business. These people wield some serious political power -- it's the basis of their whole businesses.