This morning, AT&T announced that it will buy Waypoint, Inc . to the tune of $275 million (all cash, baby) thereby expanding AT&T’s network of free WiFi hot spots across the US.  A response to the increased number of WiFi enabled smart phones hitting the market and the continued cost burden to the 3G network, which is losing AT&T money

AT&T’s 3G network has been hit hard with loads of people using iPhones, Blackberries, and other smart phones for data and voice, as opposed to just voice.  This inundation of data use (to browse Facebook, check email, Twitter, or upload photos and stream video) has forced AT&T to realize the value of opening a free WiFi networked infrastructure.  AT&T customers carrying a WiFi enabled hand held can jump onto one of AT&T’s hot spots, which they just expanded by 10,000 locations by agreeing to purchase Waypoint, Inc., and surf the web at WiFi speeds which are much faster than 3G speeds.  Hopefully, this will reduce the burden to the 3G network and save AT&T some money.

The major hindrance being that WiFi has a relatively limited range, so unless you’re sitting in the coffee house, at the McDonald’s, or near enough to any of the other now 20,000 US locations, you’re probably not going to offload too much of the 3G burden.  Although, maybe a little less burden is just enough to keep 3G working for now.  At least until 4G comes along.

The added Waypoint locations also benefit AT&T’s DSL subscribers, who can use their WiFi enabled laptops at any of these hot spots.

On Novemember 4, 2008, while most folks in America were celebrating the conclusion of an historical election, some of us (name call how you like) were busy celebrating the FCC’s unanimous "yes" vote to open White Spaces to unlicensed or lightly licensed personal devices.  While this is not exactly the same band of frequencies as those included in the 19.6 billion-dollar auction of the 700MHZ band that took place earlier this year, it does stem from the same place — the February 2009 mandated digital conversion of broadcast TV, resulting in the release of the non-contiguous spectrum from 54mhz to 806MHZ. This recent FCC vote and news has to do with the sub-700MHZ portion that has not been auctioned.

White Space is what?

It’s fast, long-range, wireless broadband within an existing and established infrastructure.  Without getting into too many technical specifics, the White Space in question is the unused portion of the spectrum between the channels from 54MHZ to 698MHZ (everything below what was auctioned).  Each white space being about 1MHZ wide, capable of transmitting voice and data at speeds between 10mbs to 20mb per channel.  (Probably faster.)  Has a range measured in miles, and goes through most physical objects with little signal loss or degradation.

Interesting Interested Conglomerates

The major proponent, of course, being Google, who provided its White Space proposal to the FCC shortly after the 700MHZ auction closed in March. Thinking they’d already secured one open access avenue for their then upcoming mobile G1 cellphone, they smartly figured it would be a good idea to secure a second open access avenue with equal capabilities.  Google partnered with a variety of companies to move their plan forward, including tech giants Dell, Motorola, and Microsoft.  Mr. Gates himself made a lobbying appearance late in October to fight for their cause.

Not surprisingly, the major opponents of the FCC’s decision are content creators like ABC, CBS, and NBC, and those groups who provide distribution conduits for existing content, like Comcast, Verizon, and AT&T.  None of these groups want more competition getting into your living room or with providing wireless, mobile service.  They have control and, reasonably so, they want to keep it.  So they’re going to fight this FCC decision as best they can at whatever cost.

Problems For a Crowded Spectrum

Because this is the space between licensed spaces already in use, opponents argue that an unlimited, or uncountable, amount of unlicensed devices will generate too much interference with their already licensed devices, resulting in disruption to their existing services. (For example, Radio or TV microphones and cameras at live sporting events could be disrupted by too many personal portable devices at the event causing havoc on the spectrum.)

Except this is a weak argument because the FCC outlined in their standards that personal devices are required to sense nearby licensed streams and then shutdown if they are too close.  So, in theory, portable device could turn off while you’re at the game.  Although, it would seem this is unlikely to happen, as devices could easily switch to an alternate channel in the lower band, or potentially switch to a channel in the open upper band, much like devices can do now between Edge or 3G.  Not to mention the FCC also dictates that devices will not be released that have any risk of interfering with other signals.

End User Impacts

Big players with Big stacks of cash are fighting to maintain, or gain, control of how we all speed into the next era of information exchange and interactivity.  It will move across the Internet to your hand held devices where ever you are, or across the Internet into each room of your house.  You’ll no longer be dependent on Comcast, Verizon, or AT&T to get you voice and data connections.  You’ll no longer be dependent on ABC, CBS, and NBC to provide you content.  You’ll no longer be limited to crippled devices with limited function because of bad multi-year contracts.

Why This Must Happen

High-speed.  Long-range.  Existing infrastructure.  Accessibility.  Cost.  Open standards.  Wireless!  The white space currently goes unused, which is a waste of a valuable resource.  With an open, high-speed, wireless network, any user with a piece of hardware running compliant software can access the network and use the Internet.  The user’s cost to access the world wide web will diminish as hardware costs decrease, software is freely given away, and advertisers adapt.  Much like network television, the costs are covered by funds earmarked for marketing.  Everyone will have equal access to the same information at an amazing rate.

The best content (TV, movies, music, multi-media), the best services (video chat, phone chat, instant messaging, email, to do lists, content management, word processing, etc.), the best of everything else I can’t think of, will be on the Internet available to everyone at exactly the same time in exactly the same way, and so it will be for everyone to decide what’s good and what works.

The power is shifting, and I need more space!

###

I’ll admit, and let’s be honest, I’m not going to buy a new cellphone (any cellphone), and not because I don’t like what the Apple’s cooked, but because I don’t really want to spend money on gadgety nonsense.  I’ll be saving my drinking money for other things, like drinking and cab rides.  Get a grip, my man.

But while we’re here, let’s take a second to point out at least two of the new features on the next Apple iPhone that might actually make it a viable option for someone other than ane iTards.  (ooops.  just kidding.)  Those two features, of course, being support for 3G and GPS.  Now neither of these features is absolutely necessary for our corporate users, but what does come in handy is that AT&T is charging a higher price for the business plan.  I think that’s awesome.  (Man, you’re all over the place. I  know, better tag this one wandering.)

Like I was saying, the press releases say something about working with business email.  I’m not really sure what that means, and perhaps by the time we get around to reading this post there will be some clarifying information released on the matter.  In the meanwhile, I’ll continue to use my silly-ass blackberry with all its beautiful google plug-ins.  (Again, I don’t really need any of these features.  But the camera is great for collecting dust on a lens if you don’t have anywhere else to store your pocket dust…or lint.)

I think Mr. Steve Jobs did a great thing here trying to help the economy.  The product is reasonably priced and widely followed.  If only it’d been released before everyone blew through their stimulus checks.  But, fret not!  People will still spend.  I’d spend, if I were into the damn thing.  It’s neat, to say the least.  But I after what Thompology has said to me about the 3G network, I can’t fully support it.  I’m still waiting strong for the 700Mhz spectrum to have a thing done to it.

Enough.

I’ve been meaning to write about this all week, but for this or that reason, I’ve forgotten to address it. And that’s the ending of FCC auction 73, the bid for the beloved 700mhz spectrum. Apparently the only unsold portion is the D-block, which was the portion to be shared with the government for emergency broadcasting. Yesterday slashdot was running a forum about why this portion went unsold. But I say, "who cares." We care about the real winners, the winners who collectively bid some nineteen plus billion to forever change the way we use our mobile communicative technologies. Where the heck is my google android phone?

The top bidders have yet to be released. At least not as of the time of my writing this.