Google has been issuing statements over the last several weeks about the upcoming FCC 700 MHz auction.
This morning, Google formally declared its interest in participating in the auction if the FCC sticks to Chairman Martin’s open access plan.
In a letter sent from Google CEO Eric Schmidt to FCC Chairman Kevin Martin, Schmidt notes that if the FCC agrees to four specific points, it will enter the bidding for a slice of 700 MHz spectrum.
As you know, Google submitted an ex parte letter on July 9th explaining that, in order to promote genuine competition, the Commission must include open platforms as part of the applicable licensing requirements for paired commercial blocks in the Upper 700 MHz Band.
In particular, our July 9th letter requested that the Commission should extend to all CMRS-type spectrum licensees clearly delineated, explicitly enforceable, and unwavering obligations to provide (1) open applications, (2) open devices, (3) open wholesale services, and (4) open network access.
Chairman Martin was initially blasted by the entire industry, including the major carriers and CTIA President Steve Largent, for proposing the open access idea. Open access of devices and applications would erode control that the operators exert over subscribers.
Just yesterday, however, AT&T did an about face and decided to support Martin’s plan.
In a Reuters report, AT&T senior executive vice president Jim Cicconi said:
If our understandings are accurate, we believe chairman (Kevin) Martin has struck an interesting and creative balance between the competing interests.
With Google willing to commit a minimum of $4.6 billion to the bidding for spectrum, the 700 MHz auction has become the hot topic of the summer.
There is a long way to go, however, before Martin’s suggested plan for open access is approved as a formal part of the 700 MHz auction.
Thoughts?
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What’s the value of 700 MHz? Wireless networking?
Let’s see… Google Wi-Fi, Google Mobile Phone… being able to say they own it
I highly doubt Google will end up actually buying it… that is extremely unlikely since they won’t want to keep up with the bids in an industry that is not theirs. However, by putting their money forward, they have insured the FCC cannot have a reasonable objection to the plan – since they know they will get their minimum bid (required for treasury) even if they do adopt open access.
I can’t wait to see how this plays out!
(Of course, if Google did get it, that would be even cooler. Just think: Nationwide, free wireless supported by Google Adsense!)
@Arthus Erea: Since 1999 Google has been working toward becoming a telephone company and I have a very strong feeling they will actually win this auction.
Stay tuned as I’m sure more information will become available as the days and weeks move forward.
I think it would be great if Google could start wireless internet. It is so frustrating not being able to connect in some places because there’s no coverage.