While Google's intention to bid in the FCC's upcoming 700 MHz auction was never in much doubt, it was widely assumed it would do so by joining with various industry partners. Granted, the company certainly isn't hurting for cash these days, but given the hefty reserve prices attached to certain portions of the spectrum, it was assumed the company would want a little help. Not so, says the Wall Street Journal.
Citing sources "familiar with the matter," the Journal claims Google will actually be entering the bidding process sans partners and will instead focus on a separate plan to privately finance the $4.6 billion needed to qualify for the so-called beachfront "C" block of spectrum.
Even more surprising, while Google is reportedly most interested in the latter open access slice of spectrum, it also isn't ruling out bidding on other blocks, according to the Journal. Those portions of spectrum would, in theory, only provide regional coverage or come with other limitations.
If you recall, the "C" block has the mandatory "open access" stipulations attached to it that Google and other companies (like Frontline Wireless) have fiercely lobbied the FCC for over the past few months. The FCC eventually agreed to Google's demands for the block, and the winning bidder will not be allowed to impose any limitations on either the mobile devices or the applications used to access the network. As many have pointed out, however, there's still a glaring escape clause attached to the auction Order which states that if the minimum $4.6 billion bid is not met, the "C" block will be auctioned off without the open access rules attached.
Google said on Friday it has hired game-theory specialists to help plot its January auction strategy, and in a statement reiterated that "[its] goal is to make sure that American consumers have more choices in an open and competitive wireless world."
As we've said before, the 700-MHz-spectrum auction, now set for January 24, 2008, has the potential to affect everything from the cost of wireless service to the competitive landscape among U.S. mobile providers for years to come. And while Google's precise bidding strategy won't be revealed until Dec. 3, it is clear the company seems more and more serious about rearranging the existing wireless landscape. To that end, Google is also reportedly testing its own advanced wireless network in Mountain View. Who knows, some of that "operating experience" may come in pretty handy if things go Google's way.
See Also:
- Open Access Forces Triumph In FCC Showdown
- Google CEO Sends $4.6 Billion Letter To FCC
- FCC to Valley: Show Us the Money
- FCC to 700MHz Spectrum Bidders: You Better Have Bank
- Verizon Dumps on Open Access, Sues FCC
- Frontline to FCC: 700 MHz Reserve Prices are 'Arbitrary, Unsupported by the Record and Irrational'
- Google Joins Verizon, FCC Smackdown
