Google blamed for 700MHz auction bid shortfall

Posted on 15 April 2008 by Chris Davies




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Three US government representatives have alleged that Google wilfully manipulated the recent 700MHz spectrum auction, and as a result potentially dissuaded bids in excess of $10bn extra.  Republicans Cliff Stearns and John Shimkus together with Democrat Eliot Engel used a hearing today to express their concerns that, in pledging to meet the $4.6bn reserve set for Block C and thus secure open-access, new potential bidders were deterred.

“I suspect that if Google had been interested in more than just manoeuvring within the system.  It could have prevailed in the C block and become a new [wireless] entrant. I suppose we cannot blame them for trying to get free access to the spectrum; what is more concerning is, that even though we knew what they were doing, we let them manoeuvre this way anyway” Cliff Stearns, Republican representative

Google themselves have confirmed that their key priority - even more important than actually winning any spectrum - was ensuring that the open-access criteria they had petitioned the FCC for were written into the Block C contract.  The clause ensured that whoever finally won the Block - which turned out to be Verizon Wireless - would be required to allow compatible devices and software from any source to access whatever network is built.  Many saw Google’s motivation as ensuring that, even without carrier support, its Android platform would still be relevant to next-gen networks, as it could potentially supply the handsets itself.

Initial estimates for the total to be raised by the FCC’s auction put the figure as high as $30bn.  In the end, $19.1bn was raised.  Google is yet to comment on the allegations.




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1 Comments For This Post

  1. JoshH says:

    Yawn. Google was more than prepared to shell out the $4.6b if they had won the auction. It’s not their fault Verizon jumped in and placed another bid.

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