July 20th, 2007
Google ready to bid on wireless spectrum - but their way
Google will bid $4.6 billion — and no doubt much more — in next year’s auction of wireless spectrum. But there’s a catch — Google will only bid if winners are allowed to lease part of the airwaves to other companies seeking to offer high-speed Internet and other services, reports the Associated Press.
Google says that allowing companies to lease the airwaves will give consumers more options for high speed services. According to F.C.C. chairman, Kevin Martin, the current provisions of the sale don’t include this wholesale provision.
Google argues that this provision is essential to promoting competition in the wireless broadband marketplace. It wants one-third of the airwaves being auctioned off to be offered on a wholesale basis.
“In short, when Americans can use the software and handsets of their choice, over open and competitive networks, they win,”wrote Google’s chief executive, Eric E. Schmidt, in a letter to Martin.
AT&T and Verizon Communications support the current auction draft rules and would not welcome Google’s proposal.
“If they are serious, they will be able to bid and test their model in the marketplace against the business models of companies already enjoying widespread consumer acceptance,” said Jim Cicconi, AT&T’s senior executive vice president for external and legislative affairs.
There is, however, an “open access” rule that may partially meet Google’s conditions. Open network access would allow consumers to buy the wireless device and software of their choice and use it on the new network.
