Mountain View (CA) – Google co-founder Larry Page today sparked another round of rumors that the search company is playing with an idea to become a wireless broadband service provider.
During the Q1 earnings call, Page said that the firm was always looking into new ways to “expand” Internet access possibilities for users. While Page did not confirm any existing rumors, he did not reject them as wrong either.
The federal government is currently working on preparing on auctions for two major bandwidth ranges, which are currently estimated at a $10 – 15 billion value. The first auction is scheduled to be held in June of this year and will involve the 1710-1755 and 2110-2155 MHz frequency bands. Google, Amazon and eBay have been rumored to be preparing a bid for spectrum to begin with the construction of an Internet access network that is independent from traditional providers such as AT&T, Verizon and BellSouth.
After yet another rock-solid quarter performance, Google is in the financial position to become a major player in bidding for spectrum bandwidth, if it intends to. The company currently has about $8.5 billion in its warchest; the stock price closed Thursday trading at $415.00, giving the company a market capitalization of just over $123 billion. For the first quarter, the firm reported revenues of $2.25 billion, up 79% over Q1 of 2005 and a profit of $592 million, up 60% over the same quarter last year.
Google “partner sites,” websites that participate in the firm’s ad-sense program, received a total of $723 million during the quarter, up from $692 million in Q4 2005 and up from $462 million in Q1 2005.