CBS Market Watch reports that Microsoft will deliver a prototype for government testing this coming week, for telephony in the unlicensed 700 MHz band. It will mark a crucial juncture for a high-stakes bid to change the way consumers get their Internet access.
UPDATE: The Washington Posts says six partners — Microsoft, Google, Dell, Hewlett-Packard, Intel and Philips — plan to give FCC officials a prototype device, built by Microsoft, on Tuesday.
The long-awaited mystery gizmo should be able to sniff out TV signals, then shut down or jump to a vacant channel if any are detected. Microsoft’s prototype, according to MarketWatch, will be delivered on behalf of a group of powerful allies from Silicon Valley, including Intel and Google. At least some members of the High Tech DTV Coalition believe an unlicensed wireless device could provide the public with free access to the Web (and VoIP) at 700 MHz (white space analysis, PDF), instead of relying on networks owned by big telecom and cable firms.
That breakthrough, tapping into an unused part of the nation’s airwaves, is politically charged because it threatens to shift the Internet-access business away from telecom and cable companies that are historically well-connected in Washington, throwing open the field to a brand new batch of competitors.
It all hinges on how well the prototype performs in tests by the Federal Communications Commission. Microsoft and allies must prove that such devices, which can connect users via unlicensed portions of the nation’s wireless spectrum known as white spaces, won’t interfere with airwaves that major license holders acquired for large sums.
While the FCC is obligated to protect license holders from such interference, several “white spaces” bills introduced in Congress have placed added pressure on the commission to wrap up the tests in a hurry.
But along the way, a host of big guns in the telecom industry hope Microsoft and its white-space cohorts will fail.
“The telephone companies are terrified they’ll lose 40% of their wireless minutes, because you’ll be able to connect from work or home and bypass their wireless networks,” said J.H. Snider, research director of the wireless future program at the New America Foundation, a Washington-based policy institute that has long advocated to allow use of white spaces…
In other news, Yahoo and AT&T are negotiating potentially sweeping changes that could scale back their partnership, the Wall Street Journal reported, dragging Yahoo shares down 5.2 percent.
AT&T and Yahoo responded to speculation regarding their partnership saying they are constantly discussing opportunities. Randall L. Stephenson, AT&T Chief Operating Officer said, “Great partnerships must continuously work together to adapt to changing market conditions and changing strategies. We consider our partnership with Yahoo! a great partnership and want to continue building on our complementary skills and expertise.”
John C. Dvorak says cellular companies are going to do whatever they can to kill Wi-Fi. “After all, it is a huge long-term threat to them. You can be sure that the local politicians will cave on this, and we can forget free municipal Wi-Fi and Skype phones.”
Related DailyWireless articles include; Zune Phone Goes WiMAX?, Yahoo/Google Into 700MHz?, McCain Rethinks 700MHz Legislation, Alcatel Does EVDO in DC 700 MHz Net, Frontline’s 700MHz Pitch: Sharing is Good, Tom Ridge: Answer Cyren Call, Verizon Makes its Move for Universal Service Fund, Senate Testimony on 700MHz Sharing, FCC to Rural Users: 700MHz is the Ticket, McCain Wants Commercial 700 MHz for Police, Oregon’s $500 Million Statewide Wireless Network, State-wide Wireless Broadband Access, Interoperability Scorecard, 700MHZ Goes Live, The 700 Mhz Club, 700 Mhz Worth $28B, 700MHz: A Sweet Deal?, FCC’s 8th Report and Order, Joint Commecial/Muni Proposed for 700Mhz and Unlicensed Spectrum: The Sum of All Fears.
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