Hi.

I'm a private weather industry business leader with over 20 years of applied operations, sales and marketing experience. 

Google This:


Got your attention, didn’t I? Now read this:

(AP) Google will bid on coveted spectrum to launch a US wireless network, pitting it against established telecommunications players AT&T and Verizon.

Tomorrow, Google will submit their paperwork to participate in an FCC auction involving an allotment in the 700MHz band for wireless phone and data service. In a nutshell (because I know each and every one of you will go read the whole article linked above) Google’s plan is to build a wireless company which will compete with the big dogs who have been serving wireless customers for a couple decades now.
I’m all for a wireless company who wants to let everyone use whatever phone they want, create open-source platforms for their own phones, cater to the customer and do so at a lower cost than the competition. Do I think Google is the company to do this? No.
Corporate “greed in diversification” bites companies in the ass far more often than fraudulent activity, market shifts and poor management combined. Greed in diversification is a broad term for companies who hemorage money on potentially profitable projects under their umbrella which are outside of their knowledge base and thus do not survive.
Companies like Google generate a ton of cash in a sector that WILL NOT be going away. They have expanded in their sector very successfully and continue to be the innovative benchmark online. Their stock is nearly $700 per share!
That said, their yearly gross revenue is $16,000,000,000 (yes, that’s $16-Billion) and the cost of the 700 MHz band itself will likely auction at around $12,000,000,000 and to build the infrastructure for a nationwide network of wireless cells is in the neighborhood of $7,500,000,000+. This is all before you take in to account the recurring cost of yearly leasing of tower space and/or land, electricity, call centers/customer care, advertising, etc., etc., etc.
Google is a service-oriented company. They do not currently maintain an inventory of hard goods and their accounting system is not optimal for this type of company (yes, I have researched this).

So, if you are the CEO of Google and you have $16B of gross, mostly cash, yearly income burning a hole in your pocket, would you put the cash back into your company to support employee profit sharing, infrastructure expansion and new projects within your sector, then depend on the exponential growth of the internet to continue to support your business? - - or would you go renegade into uncharted waters and enter into a sector that will require mucho cash, new knowledge sets among employees/management, new accounting system, etc.?

Here’s the part where I contradict myself:
I’m sure Google has commissioned all kinds of feasibility studies covering this new venture and again, I hope it works out for them and actually does benefit the consumer. Bottom line though is that they are operating outside of their comfort zone and I can’t imagine this will be successful enough to sustain. Time will tell and if there is one company who can pull it off its Google thanks to the cash-rich nature of their business.

Not sure how to feel about this...

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