Google Announces Intention to Bid for Wireless Spectrum

Excerpts from the Google press release:

In a filing with the FCC on July 9, Google urged the Commission to adopt rules for the auction that ensure that, regardless of who wins the spectrum at auction, consumers' interests are served. Specifically, Google encouraged the FCC to require the adoption of four types of "open" platforms as part of the license conditions:

  • Open applications: Consumers should be able to download and utilize any software applications, content, or services they desire;
  • Open devices: Consumers should be able to utilize a handheld communications device with whatever wireless network they prefer;
  • Open services: Third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
  • Open networks: Third parties (like internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee's wireless network.

Today, as a sign of Google's commitment to promoting greater innovation and choices for consumers, CEO Eric Schmidt sent a letter to FCC Chairman Kevin Martin, stating that should the FCC adopt all four license conditions requested above, Google intends to commit a minimum of $4.6 billion to bidding in the upcoming 700 MHz auction.

This might be seen as a bid to force the FCC and others to comply with its conditions or compete with Google in the open market at a price of at least $4.6 billion for the licenses. But it also indicates that Google is much more serious about mobile than simply being one of several mobile search and ad networks.

Here's Google's blog posting about the issue and their thinking.