700mhz Spectrum Auction "Google" deal is in  - FCC Gives Google Half a Win says Paul Kapustka over at GigaOm.

"…The FCC took real but incomplete progress this afternoon,” said Rick Whitt, Google’s lead policy exec, in a conference call Tuesday afternoon, lauding the openness conditions but lamenting the omission of rules enforcing wholesale access to the spectrum. When asked if Google would still bid on the spectrum, Whitt said Google “didn’t say it wouldn’t,” meaning that Google will make that decision at a later date.

"..the 700 MHz auction rulemaking is finally in, and as expected the commission adopted some of the open-networking proposals championed by Google, but not all. While Google carefully lauds the FCC for its action in a post on the company’s public policy blog, both Google and other observers (like the analysts at Stifel, Nicolaus) are guessing that the fine print in the rules (they will likely be published in a couple weeks) will make it extremely hard for any new national provider to surface. Official releases now are on the No info yet on the FCC site; the rules passed on a 4-1 vote, with commissioner Robert McDowell, the new friend of the incumbent telcos, as the only commish against Martin’s plan. "

I've written about this before in Open Spectrum 700mHZ Google Sanctioned Auction and 700mhz - The 700 MHZ Spectrum coming your way soon.  

So is the Google Phone in my future using the 700mhz spectrum being bid upon by this auction?

700mHZ Open Spectrum auction debate heated up today - and the first wind I got on it was several visits to my 700mhz - The 700 MHZ Spectrum coming your way soon that I wrote last week.

But then I must have read 3 or 4 blog posts about the same thing including Johnon.com Google Bids $4.6 Billion for Open Spectrum where John Andrews remarked:

".. Unlike many pro-Google bloggers, I do not think this is a benevolent act by Google. And I don’t believe this is Google working to improve the world. However, the current (and former) telco industry has so screwed the consumer that I fear there is no way anything could be worse than the ad-filled, privacy-threatening GoogleView likely to come out of this."

"…Google is less of a threat than Verizon and the other telcos when it comes to spectrum allocation."

Google is now, in this instance, being highlighted not as a force for good (it's former persona) but the lessor of two evils.

Meanwhile Om Malik at GigaOM mentioned that Google will bid for Wireless Spectrum who confirmed that Google is in the auction to win and AT&T Responds to Google Bid with more mudslinging:

"..They are all trying to basically control the piece of spectrum that is going to be vacated when analog television shuts down. The spectrum is going to be auctioned off in February.

This morning, Eric Schmidt sent a letter to the FCC and said Google will also bid for the spectrum in the wireless auctions, and have indicated that they are going to bid a minimum of $4.6 billion, as per requirements. "

"…Google intends to be a bidder in wireless auctions for the 700 MHz spectrum, and their new proposal doesn’t sit well with AT&T. (Surprise! Surprise!) Jim Cicconi, AT&T Senior Executive Vice President, External and Legislative Affairs in a written statement emailed to us said:

Not satisfied with a compromise proposal from Chairman Martin that meets most of its conditions, Google has now delivered an all or nothing ultimatum to the U.S. Government, insisting that every single one of their conditions “must” be met or they will not participate in the spectrum auction. Google is demanding the Government stack the deck in its favor, limit competing bids, and effectively force wireless carriers to alter their business models to Google’s liking. We would repeat that Google should put up or shut up— they can bid and enter the wireless market with any business model they prefer, then let consumers decide which model they like best.

If $4.6 Billion is the minimum bid, what's the maximum bid for the 700 mHZ Open Spectrum? 

Engadget also weighted in by posting Google to bid on 700MHz spectrum if conditions are met, repeating the same story but without as much detail.

You what I think?

Someone needs to own that 700 mHZ Open Spectrum when it becomes available but I think each bidder should submit plans on what it plans to do with the spectrum if it wins any of the bids including the services and prices and availability after the 700mHZ Spectrum is acquired by the bidder.

And I don't hear anyone doing this … yet.   I kind feel that selling the 700MHZ Spectrum to the higher bidder is not necessary the way to go.

The 700mhz spectrum, whose use is actively coveted by Google, according to John Battelle, in a post called Google On Wireless Auctions and Spectrum Use: Worth Reading, and GigaOM - ie: 700 MHz Explained in 10 Steps covering what the 700 MHz Spectrum means to wireless communications.

The 700 MHz mobile network would be inexpensive to build compared to any other alternatives:

GigaOM says:

"…The spectrum, currently owned by broadcasters, has been used for analog television. But it is set to be turned over to the government in 2009. Due to its broadcast-attractive physics (like its ability to penetrate walls), this spectrum is desirable for both broadband communications in general and public-safety uses in particular.

Also, a 700 MHz mobile network would be relatively inexpensive to build compared to the alternatives:

"…According to some estimates, the cost of building a nationwide wireless network over the 700 MHz spectrum is around $2 billion versus a nationwide 1900MHz PCS that costs approximately $4 Billion. The costs are lower in rural areas, due to less interference issues and wide-open spaces. That’s because each tower broadcasting at 700MHz covers twice as many square miles. Some estimates say that a single 700 MHz tower can cover 20-miles. (#)

 

 

 

 

 

 

 

 

 

Google has taken a very strong position on 700mhz in The promise of open platforms in the upcoming spectrum auction:

"…We also noted that a proposal by Frontline Wireless to impose a wholesale/open access mandate on a certain spectrum block would ensure that the owner of that block at least would operate its wireless network in an open manner. "

"…Over the last several weeks, we’ve been taking a closer look at whether and how Google might participate meaningfully in the auction. As part of that look, we've consulted with spectrum auction experts and conducted various game theory scenarios. Our analysis has confirmed that, under the originally proposed rules, the existing national wireless carriers are likely to prevail in the bidding process against a potential new entrant like Google. While we remain interested in the possibility of participating in the auction, it’s clear that the incumbent carriers have built-in advantages that will prove difficult to overcome (particularly the economic and operational barriers to entry for a company like ours, and the relatively greater value and usefulness that spectrum brings to existing carriers)."

Ah ha…Google wants to bid on the 700 MHz Spectrum and create an "open network" with it.  Here's a situation where I'd rather have Google own it than Sprint, ATT or TMobile.   Most of the time I think Google is getting into too many things - but here I think we'd have a better, freer, 700MHz network if they ran it than a some other entity…but that's just me.  

What do you think?  Should Google be allowed to bid on the 700 MHz Spectrum when it becomes available?   Would you want Google to own it?