In two separate statements made recently, Google has said they would carefully study the final rules set forth by the FCC before making the final call to take part in the FCC's auction, and that they are still interested in the auction.
On Tuesday, the Federal Communications Commission (FCC) voted on the rules for the spectrum auction that is to take place next year. The final FCC vote means several changes to the existing rules governing the commercial services portion of the 700 MHz Band. Most notably, the FCC determined that licensees for the Upper 700 MHz C Block will be required to provide a platform that is more open to devices and applications.
Richard Whitt, Washington Telecom and Media Counsel said that Google would need to study the actual text of the FCC's rules before making a decision to take part in the spectrum auction. “None of us like how the current system locks you into wireless service plans that limit the kind of phone or PDA you can use, prevent you from downloading and using the software of your choice, and charge you hefty termination fees if you try to get out. And it's hard to ignore how the existing wireless carriers talk a good game about the virtues of the free market, but prefer to keep us stuck in their closed market,” Whitt said, speaking about the FCC’s rules, and the outcome of the vote.
Whitt said he was pleased with the progress the FCC has made, “Just two months ago, the notion that the FCC would take such a big step forward to give consumers meaningful choice through this auction seemed unlikely at best.”
“We are still very interested in the auction,” Chris Sacca, Google’s VP of special projects said, but he did not give details telling Dow Jones that he did not want to reveal any details of Google's strategy to potential rivals. The mention of the rivals adds another interesting twist. Dow Jones said that the FCC set the ground for a bidding war. The warriors, according to their report, are companies like Google, Yahoo, eBay, and Intel. Will they come out on top and can they match a $4.6 billion bid from Google, if Google takes part in the auction is the question on the minds of consumers, and market watchers.
While the High-Tech firms are fighting it out, what about Verizon, and other carriers like Vodafone, and AT&T. Will they make a bid? According to some reports, there might not be a single bid form anyone.
Commissioner Robert McDowell voted no to the open access rules, and his no vote was the first one on records for him. In a statement he explained the reason for the no vote as, “…the majority’s decision to impose “open access” requirements on the C Block licensee represents a sharp departure from well-settled FCC precedent.”
“Throughout this proceeding, I have not heard a convincing argument refuting why wealthy Silicon Valley new entrants are not as capable of bidding on unencumbered spectrum as other wealthy companies,” said McDowell. “More importantly, I remain unconvinced that the Commission must favor large companies over smaller entrepreneurs. Why not give both an equally fair shot with [an open, condition-free auction], which offers varied market and sizes and spectrum blocks?”
“Curiously, however, in an effort to favor a specific business plan, the majority has fashioned a highly-tailored garment that may fit no one. It’s not what Silicon Valley wants; it’s not what smaller players have told me they want; and it’s not what rural companies want. To date, the Commission has received no assurances that any company is actually interested in bidding on the encumbered spectrum. Not one,” McDowell continued his rant, pointing out that, “The majority recognizes the risk that the encumbrances pose, yet has taken the unprecedented step of designing a fall-back “Plan B” auction in the event the first auction fails.”
“Plan B” as he put it is the risky one. The FCC placed a price of $4.6 billion on the C Block but if that price is not met during the auction, it can be resold. The problem is that if the C Block is resold, then the commercial airwaves can be resold for a lower bid and without the open access attachment.
What will happen is anyone’s guess. Google will make the formal announcement after they have read all of the rules, and while there is no official announcement from the other High-Tech firms, as the date of the auction is announced, expect word from them too.
techAug 4th, 2007 - 16:00:05
google is 'barking' up a tree. 700mhz is outdated. 4G global wireless 3thz is where Gaiacomm International is. Google will have to be a vendor for them oneday.
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