Google Is Bluffing – Not Serious About Buying Airwaves?

This past week some analysts have hinted that Google may be bluffing about buying the 700 Mhz spectrum, and that the company may not be serious about offering any type of new cell service. Some of the conjuncture is based on the high cost of acquiring  the new airwaves, coupled with the fact that some of major teleco’s may not want Google tromping on their turf. To add fuel to the fire is the assumption that companies such as AT&T and Verizon will try and protect their cash cows and do not like the thought of ad based cell phones which could potentially cut into their lucrative profit margins.

Using the example of Apple’s popular iPhone which is linked to AT&T for service, some cite this as an example of how the big boys want things to work. The consumer not only buys a phone at a premium, but than is tied into a contract with a major teleco and pays a high premium for connecting to services such as internet access. Though the teleco’s realize that they would receive monies from ads on mobile phones, this is a untried area and they are somewhat reluctant to give up what currently is working in their favor. Locking in consumers into their service pays very well.

Now for Google. The company could sit back on its rear end and rake in the money from their own internet cash cow ads, and stop dead in their tracks. But when one reads what Google is doing, developing mobile technology using open source, seeking partners outside of the good old boys club, contracting with suppliers for mobile phones and applying to bid on the up coming FCC spectrum, how could anyone think that Google is not serious?

What purpose would a bluff serve?

What do you think. Comments welcome.