After months of speculation and analysts opinions, the FCC’s auction for the “beach front” 700MHz wireless spectrum opens for bids today.  Predicted to net the government in excess of $10 billion, the sale - which will see bands previously used for analogue television broadcast repurposed as wireless networks - has prompted great interest both from traditional telcos (including AT&T and Verizon Wireless) and companies fresh to the field, such as Google.

Separated into five blocks (A through E), the most hotly contested is expected to be block C, prized for its breadth of 22MHz and the fact that it is made up of more closely packed regions than the others.  It has also been central to new open-access provisos demanded by Google, which will ensure that, no matter who wins the frequencies and subsequently rolls out a network, any compatible device will be able to access it.

Reserve prices have been set, and if they are not individually met then that section of spectrum will be re-auctioned at a later date (with an altered reserve figure); block A has been set at $1.81bn; block B at $1.37bn; block C at $4.64bn; block D at $1.33bn; and block E at $904m.  In addition to the open-access clause of block C, whoever wins block D will have to construct a dual-purpose commercial and public-safety network. 

In an attempt to prevent collusion and deal-brokering, the FCC has forbidden any of the 214 auction participants from publicly revealing information about their bidding status.  If contravened, the company will be ejected from the proceedings.  The auction itself will consist of three bidding phases each business day, with the FCC informing those involved of the current bids - though not the identities of those who have placed them - following each phase.  With no set end-date, the process continues until no further bids are made.

Should block C not reach its reserve, then on re-auction the open-access clauses will be deleted; this has led many to suspect that Google will bid up to - but no further than - the $4.64bn minimum, so as to ensure that Android-powered handsets will be able to use the network of whoever finally takes the frequencies. 

You can find more information about the FCC auction - and Google’s part in it - at our sister-blog, Google-Phone.com