T-Mobile will be the first carrier in the U.S. to launch Google’s highly anticipated Android phone. Android is the open source mobile operating system being developed by Google and its partners, who together form the Open Handset Alliance. According to the New York Times, the new Google phone may be available in October. The phone will be manufactured by HTC, and is often referred to as the “Dream.” Google can’t wait to get Android going because it believes its long term future resides in mobile computing. The New York Times article quotes Google CEO Eric Schmidt as saying, “We can make more money on mobile than we do on the desktop, eventually.”

A first to market launch of Android could also help T-Mobile. They have been somewhat behind the wireless innovation curve, arriving late to both the 3G and smartphone parties. A successful Google phone launch, and the buzz it will create, could help T-Mobile’s competitive posturing with AT&T and the iPhone and Verizon’s continuing wireless gains. T-Mobile will have to leverage any potential Android buzz effectively, because they won’t have the limelight to themselves for long. Sprint is expected to follow with an Android launch sometime in 2009. Both T-Mobile and Sprint could use a boost from Android. Their competitors, AT&T and Verizon, seem to be hitting on all cylinders when it comes to wireless. Maybe Android can help them catch up.

MetroPCS has opened their network, allowing new customers to bring their own compatible CDMA device. MetroFlash, as it’s branded, removes the requirement of a new handset purchase for new MetroPCS customers. It follows a trend of “openness” now being experimented within the wireless industry. Both Verizon Wireless and AT&T have made similar claims for openness. It’s open for debate as to how all of these carriers actually define open. Some would argue these claims are more of a marketing ploy than a true open strategy. Google has had significant influence on the openness issue, both through their Android initiative, and through their lobbying efforts surrounding the recent 700 MHz auction. As the mobile web experience matures, openness will become more paramount. Consumers will want to connect to the mobile web, regardless of the device they happen to be using at any given time. These initial open initiatives are probably a leading indicator of the future of wireless. Wireless carriers will need a well defined "open" strategy to remain competitive in the wireless web world. It’s not going to happen overnight, but the genie may be working her way towards the bottle opening on this one.

Google’s mobile operating system has been delayed. Android’s much anticipated launch, originally scheduled for a midyear, has been delayed until the fourth quarter. Realistically, we won’t be seeing Android until 2009. It’s a somewhat more costly delay than normal for Google. Development projects of this scale always have delays, but Google’s competitors are seizing on the Android void. Apple’s 3G iPhone will now have a sizeable lead in the marketplace and RIM’s BlackBerry will as well. According to the Wall Street Journal, the delays are being caused by customization and translation challenges from carriers like Sprint and China Mobile. The Wall Street Journal even speculates that Sprint may forgo a 3G version of Android, and wait until a 4G WiMAX version is ready. Whatever the cause, we’ll have to wait to see what the competitive impact of Android and its burgeoning ecosystem will be.

Update - May 7, 2008: It's official. Sprint and Clearwire announced the formation of the "new" Clearwire, as discussed below in the original May 6th post.

A mega deal which involves Sprint, Clearwire, Intel, Google, Comcast, Time Warner Cable, and Brighthouse Networks is on the verge of being announced according to the Wall Street Journal (subs. req.). The deal will merge Sprint and Clearwire's WiMAX assets into a company valued at $12 billion. The company will retain the Clearwire brand and will be led by Clearwire's CEO Ben Wolff. The cable company investments totaled over $1.5 billion, led by Comcast who ponied up over $1 billion. The deal has been rumored for months. It is expected to be announced as early as Wednesday.

It appears as if WiMAX will now have the foothold it needs to become a 4G wireless force in the North American market. Cable companies including Comcast, Time Warner Cable, and Brighthouse will now have access to a legitimate broadband wireless network and begin the long process of integrating wireless opportunities into their core business. The deal will allow cable companies to sell broadband wireless under their own brand. It's somewhat surprising that cable companies and Sprint are partnering for another wireless venture, given the failure of their previous joint effort, Pivot Wireless. Perhaps Pivot's demise was intentional to make way for Clearwire. It's not clear what this development means for cable's AWS spectrum holdings. Regardless, this new WiMAX momentum will provide interesting competitive observations. Sprint will conceivably gain a considerable 4G lead over their main competitors, AT&T, T-Mobile, and Verizon, who have all tagged LTE as their 4G technology of choice. It will be at least a couple years before we see them bring something to market though. It's some welcomed news for Sprint, which has seen nothing but rumors focused on their troubles swirling for the past few weeks.

Google has petitioned the FCC regarding Verizon’s win of the 700 Mhz C block spectrum. Google pushed hard for, and won, an “open” mandate for the winner of the 700 Mhz C block. The mandate basically says that the winner of the spectrum must provide open access and allow devices from any source to access the broadband wireless network utilizing that spectrum. Google sees this open access mandate as a gateway for its upcoming wireless Android platform, which will potentially drive millions of users towards their products and solutions. Google believes those same potential users may not be able to easily reach and use Google’s wireless focused products without that open access provision. The competitive implications are numerous because most wireless Internet access is now controlled by wireless carriers through restrictions and “walled garden” approaches. Opening it up, would allow competitors to build relationships with wireless subscribers and perhaps create the “dumb pipe” scenario for wireless broadband, where wireless carriers simply provide a pipe to the Internet, and don’t create any additional value/revenue for them. It’s the same issue currently being debated by wireline broadband carriers – should I just provide the pipe, or should I try to build more value around that access for which I can create incremental revenue.

Of course we know that Verizon and other communications conglomerates are quite crafty. According to Google, Verizon interprets the open access rules a little differently, and don’t intend on providing open access on its own handsets. Google also contends that the open access provision, while being offered through non-Verizon handsets, will be offered at presumably much higher access costs to the consumer, thus discouraging its use. Google is asking the FCC to deny Verizon’s winning bid for the C-block spectrum, which Verizon won for $4.7 billion, unless they take a more broad approach to the open access mandate. This will be one to watch, because its outcome will have profound implications on the wireless competitive landscape.

Read more insight on this issue at the IP Democracy blog.

CTIA and the wireless service providers they represent, weighed in on the wireless white space spectrum debate, and their view is squarely counter to Google’s. CTIA says wireless white space spectrum should be auctioned and licensed, not designated as unlicensed as Google advocates. Google made a lot of noise earlier this week with an ex-parte letter to the FCC, urging that white space spectrum should be unlicensed and used for wireless broadband applications. Wireless white space is spectrum allocated to television channels between 2 and 51. It’s great spectrum for broadband wireless and will come into serious play after the 2009 digital TV transition (although some of it is free now, depending on geography).

CTIA argues that licensing the spectrum is the surest way to reduce interference potential. That argument does have some validity. But it also doesn’t hurt that CTIA’s largest members are probably in the best position to win that extremely valuable spectrum at auction. If it goes unlicensed, interference issues aside, it could empower a variety of competitors for the likes of Verizon, AT&T, and Sprint, among others. Depending on your perspective, that could be good or bad. CTIA would fall in the “bad” category and hence will push hard for some form of licensing.

Google’s influence in wireless continues, with its focus shifting away from the 700 MHz auction to the so called wireless “white space” initiative. Wireless white space is the “empty spaces” in television spectrum used by channels 2 through 51. After the 2009 digital TV transition, this spectrum will be freed up and Google would like it to be used as unlicensed spectrum for broadband wireless. Google claims that gigabit per second speeds could be achieved wirelessly, and they would like to be very active participants in making that happen. They view white space wireless as "Wi-Fi 2.0," allowing a variety of wireless devices to access a ubiquitous broadband wireless network. In an FCC ex-parte letter, Google even suggests funding the research and development and technical support costs for bringing such a solution to market.

Google has already demonstrated their influence in wireless policy. They were very active, and may hold much of the responsibility, for ensuring the recently auctioned 700 MHz C-block spectrum had an “open access” provision tied to it. They did not win the spectrum (and probably had no intention of doing so), but their influence into the rulemaking and commitment to meeting the FCC’s minimum bid requirement ensured open access was mandated for that portion of the spectrum. They are now working to influence the white space initiative, and the FCC has no choice but to listen, and probably act. There are considerable issues to be worked out including, potential interference and equipment development issues, before white space is a reality. There are heavyweight opponents to white space wireless as well, including the National Association of Broadcasters (NAB), and even the NFL, who fear it would interfere with their game referee’s wireless mic systems. Google’s desire is to see as much open broadband wireless connectivity as possible, so their forthcoming Android platform for wireless devices can be widely deployed. They are pushing for open access and unlicensed requirements so Android can interact with wireless networks without being tied to a specific wireless carrier. If their foray into the 700 MHz debate is any indication, Google may see their desires come true with the white space initiative. The competitive implications for these moves are wide and deep, and could significantly alter the wireless landscape as we know it.

The Wall Street Journal is reporting (subscription required) that Yahoo is courting Time Warner to combine AOL and Yahoo into a new company, with Time Warner holding a minority stake. The effort is an attempt to either stop Microsoft’s Yahoo bid, or at least force them to sweeten their offer. Whatever the outcome, it appears that Yahoo will enter into some transaction that will significantly alter the online search and advertising industry and will certainly impact the mobile wireless arena as well. Time Warner is reportedly putting the “finishing touches” on a proposal, which will soon be given to Yahoo’s board. In a separate note, Yahoo delayed the nomination process for its board to thwart a proxy fight with Microsoft. See the below video for more details.

The Wall Street Journal postulates that Microsoft is still likely to prevail, despite Yahoo’s efforts to court others, including AOL and News Corp. The implications on the Internet business are somewhat obvious. But a combined Microsoft and Yahoo would become a true wireless powerhouse as well. Both companies have well defined wireless strategies. Microsoft has Windows Mobile which will ship on over 20 million handsets this year. Yahoo has developed a suite of wireless applications that are featured on several wireless carriers including AT&T and T-Mobile. Both Yahoo and Microsoft have an interest in slowing Google’s wireless foray, Android. The next frontier for the Internet, search, and advertising is mobile wireless. Globally, mobile handsets will soon take over as the number one way that consumers access the Internet. Yahoo would be a prized asset for any company looking to effectively compete in this new frontier.

Cavalier Telephone, a Richmond, VA based CLEC, announced the availability of Google Apps to its high speed Internet subscribers. The Google application suite will be offered through a Cavalier web domain and will provide Gmail e-mail services, Google Calendar for shared scheduling, Google Product Search for shopping, Google Picasa for photos, and the Google Start Page feature which will allow subscribers to create a customizable home page. Cavalier claims to be the first company in the communications industry to launch these services.

Wireless Internet service received from hovering blimps has been talked about on several occasions. For right now it’s a niche industry serving the transportation and energy industries. The company providing the technology is Space Data, based in Chandler, AZ. According to the Wall Street Journal (subscription required), Google is interested in investing in or maybe buying Space Data, with the hopes of launching competitive wireless service targeting rural markets.

The balloons are launched on a daily basis, because they only remain airborne for 24 hours, before their electronic transceiver equipment floats back to earth by parachute (see movie above for a demonstration). Each balloon can cover a geographic territory that would normally require 40 cell phone towers. It’s unclear what type of broadband speeds, if any, such an application can provide (we’ve placed a call into Space Data, for clarification).