Friday, November 30, 2007

Google entry to mobile phone bidding

Google has confirmed that it will be taking part in next year's sale of mobile phone spectrum in the US, heralding its entrance into the wireless market.

The company's executives have said over the past few months that they would be willing to spend upwards of $4.6bn (£2.3bn) buying up capacity when the Federal Communications Commission sells off part of the 700 megahertz (MHz) band.

The move means that Google could become America's newest wireless network operator. It already runs relatively small-scale wireless internet access networks in its home state of California, but winning new spectrum would allow it to start a national network.
But the search engine giant will be fighting the auction against bidders including existing mobile phone companies AT&T Wireless and Verizon Wireless, part-owned by Vodafone, who are looking for more capacity for their existing networks.
Google is particularly interested in a portion known as block C - which has a reserve price of $4.6bn - because it is being sold under the condition that whoever buys it must allow customers to download any software application they want onto their devices. Google lobbied hard for this portion of the airwaves to be free of ties to a particular technology.
The spectrum is being sold in an auction starting January 24 as part of the move to digital television.
"We believe it's important to put our money where our principles are," said Google boss Eric Schmidt. "Consumers deserve more competition and innovation than they have in today's wireless world."
"No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the internet."
Google will file its intention to take part in the auction with the FCC on Monday - the deadline for potential bidders to make themselves known. Its application does not include any partners.

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