Google enters FCC spectrum auction for wireless foray

December 3, 2007

Neil Strother is an analyst for JupiterResearch

If Android, OpenSocial and adding the Google imprint in every crevice of the interactive marketing space were not enough, the search giant has said that it will participate in the Federal Communications Commission's auction of wireless spectrum in the 700 megahertz (MHz) band.

Google's new attention to mobile, which pits it against wireless carriers, is particularly focused on the analog space being vacated by broadcasters as part of the digital transition. The spectrum is considered ideal for wireless broadband because it penetrates walls and can travel great distances.

“It's no surprise,” said Neil Strother, analyst at JupiterResearch, New York. “Google officials have been hinting about a 700 MHz spectrum bid for months – and now they're stepping up.”

Google's formal application to participate in the 700 MHz auction will be filed with the FCC Dec. 3. The application does not include any partners.

The company issued a statement on its blog heralding the auction as a catalyst to variety in mobile communications offerings. It declined to make any further comment per FCC rules.

“Monday…marks the starting point for the FCC's anti-collusion rules, which prevent participants in the auction from discussing their bidding strategy with each other…While these rules primarily affect private communications among prospective bidders, the FCC historically has included all forms of public communications in its interpretation of these rules,” said Chris Sacca, head of special initiatives for Google, on the official blog.

The auction official begins Jan. 24.

Per the FCC’s regulations, a key portion of the spectrum up for auction called “C Block” will allow users to download any software application they want on their mobile device and to use any mobile devices they would like on that wireless network.

The winning bidder must ensure these rights for consumers if the reserve price of $4.6 billion for the C Block is met at auction.

“Whether Google wins the spectrum or not doesn't seem to be the big issue,” Mr. Strother said. “What Google is after is an open mobile Internet where its services and advertising business model can thrive.”