Google claims credit for FCC wireless auction results

By Jacqueline Emigh | Published April 7, 2008, 3:03 PM

Two Google counsel said in a blog post this morning that Google didn't really want wireless bandwidth, even though it did place a bid during the FCC's recent 700 MHz spectrum auction.

Verizon Wireless spent $9.6 billion to win a majority of licenses for spectrum in the coveted C block. But Google is claiming at least partial credit for the auction's results, with the search engine leader saying today its intent was to drive up the asking price "in order to reach "the $4.6 billion reserve price that will trigger the important 'open access' and 'open applications' license conditions."

"Partly as a result of our bidding, consumers should have new freedom to get the most out of their mobile phones and other devices," wrote Richard Whitt and Joseph Faber in their company's public policy blog.

Companies that did pick up spectrum in the various spectrum Blocks included Vulcan Spectrum, led by Microsoft co-founder Paul Allen, in the A Block; AT&T in the B Block; Verizon Wireless, in the C Block; and EchoStar, the owner of Dish Network, in the E Block.

Google was "prepared to gain the nationwide C Block licenses at a price somewhat higher than the reserve price; in fact, for many days during the early course of the auction, we were the high bidder. But it was clear, then and now, that Verizon Wireless ultimately was motivated to bid higher (and had far more financial incentive to gain the licenses)," according to the attorneys.

"You may remember that as the FCC was setting rules for the auction last summer, we urged the Commission to adopt four openness conditions. Further, we vowed to bid at least $4.6 billion in the auction if the Commission adopted all four rules. Even though the FCC ultimately agreed to only two of the conditions, which nullified our original pledge, we still believed it was important to demonstrate through action our commitment to a more open wireless world," wrote Whitt and Faber.

"We're glad that we did. Based on the way that the bidding played out, our participation in the auction helped ensure that the C Block met the reserve price."

In a conference call with analysts and journalists last week, AT&T also corroborated the hunches of some observers that it didn't really want to win any spectrum in the C Block, anyway.

Beyond the spectrum gained in the B Block auction, AT&T spent $2.5 billion prior to the C Block auction in acquiring Aloha Partners LP, a license holder that owned C Block spectrum, but without the Google-driven "open access" requirements FCC Chairman Kevin Martin is imposing on Verizon Wireless as the big winner in the C Block.

"Open access" and "open applications" are important to Google because both could give independent players room to build a cooperative wireless platform. That platform would be based around Android, a Google-led project to build a Linux 2.6-based software stack envisioned as running open source applications running on multi-vendor mobile devices.

Also backing Android is the Open Handset Alliance (OHA), a Google-spearheaded industry association consisting of about 35 mobile operators, handset manufacturers, chip makers, and "commercialization companies."

Ironically, though, the OHA's membership roster includes only two mobile operators with a presence in the US: Sprint Nextel -- a carrier that still envisions building its 4G Xohm network in the 2.5 GHz spectrum -- and T-Mobile. Verizon Wireless in not on the OHA list, and neither is AT&T.

Android is "already off to a successful start, and we are likely to see handsets later this year based on the Android platform," according to Google's counsel, who also indicated that the company will continue to try to make its influence felt during the re-auction of D Block spectrum that didn't meet the FCC's minimum price.

"We will weigh in at the FCC as it sets implementation rules for the C Block, and determines how to move forward with a D Block re-auction," the attorneys vowed.

Comments

View comments by with a score of at least

Next Google will claim they helped God create the world in 7 days using Google maps.
Of cousr then they will blame god for all the pictures on Google maps looking in people's windows.

Score: 0

|

Confirming what many thought isn't really a claim. It benefits them a lot to have the C block open.

Score: 0

|

Google rolls out real-time search, Near Me Now, extended personalization

Over time, searches from PCs and mobile phones will grow even "more personalized." But what about user privacy and search results that give you "the truth"?

Intel's marriage of CPU and GPU not ready for prime time

Although there will be an Intel component this month that can compute and plot in parallel, Betanews was told today, it won't be based on Project "Larrabee."

An alternative to Research in Motion's enterprise e-mail? There's an app for that

Good Technology today released an iPhone app compatible with its enterprise e-mail solution.

Playing catch-up in 2010: Windows Mobile, BlackBerry, and Symbian

Microsoft, RIM, and Nokia are each working on improved mobile operating systems. But could these efforts add up to too little, too late?

Windows fix for TLS security bug still forthcoming, won't be Tuesday

Anyone looking for a fix for last month's discovery of a potentially serious security hole in TLS and SSL may have to wait until everyone is ready to act together.

Not the first, not the last, technology predictions for 2010

Carmi Levy | Wide Angle Zoom: The real truth is probably that what went around in 2009, will come around to haunt us next year.

Google Goggles: Hands on with the Shazam of the Real World

Google today unveiled Goggles, its visual search lab for Android devices that identifies objects by sight.

Microsoft: Windows 7 Family Pack wasn't 'pulled,' it just sold out

If you hurry, you may still be able to find the last Family Pack upgrade editions hanging around retail store shelves, but probably not so much online.

Clever iPhone game returns after being bumped over a name dispute

The game's simple concept and multitude of platforms and puzzles manage to pull off a retro, 8-bit style that's reminiscent of an old Atari game given a modern makeover.

Report: Microsoft to randomize Europe's browser screen choices

The fact that "A" is for "Apple" was apparently at the heart of browser vendor objections to Microsoft's alternative to listing IE first.

Will Nokia's plans further alienate American consumers?

A look at Nokia's plans for the coming years does little to shine up the company's increasingly dull image.