Google Pledges $4.6 Billion for “Open” Wireless Spectrum Auction

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Google Pledges $4.6 Billion for “Open” Wireless Spectrum Auction

6:20 am on July 24, 2007 | Category: Business, Telecom Services, Wireless, Regulation, Editorials

Internet search giant, Google Inc., has promised to bid a minimum of $4.6 billion in an upcoming wireless spectrum auction, if the U.S. Federal Communications Commission agrees to implement a number of rules and conditions to the sale process.

Google, which clearly hopes to make inroads into America’s wireless market, is encouraging regulators to set aside “open airwaves” for new bidders. This would allow new market entrants to compete against incumbent cell phone carriers like AT&T and Verizon Wireless.

Google is also encouraging the government to prevent big wireless providers from limiting what content their subscribers can download, and what third-party services they can use.

“We’re putting consumers’ interests first and putting our money where our principles are — to the tune of $4.6 billion,” said the head of special initiatives at Google, Chris Sacca, in a company statement

America’s top wireless carrier, AT&T Inc., took a different attitude to the search giant’s requests, however, with once senior executive saying that “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,” commented AT&T’s executive VP of external and legislative affairs, Jim Cicconi.

Much as I personally respect Google, and the influence it is having on the internet landscape, I would have to agree with Cicconi and other critics of the company’s proposal. Heavily regulating wireless auctions amounts to unjustly controlling the wireless market, just as some regional telecom providers are currently gunning for in Canada.

Google would make a great addition to the wireless market, but they should play by the rules just like everybody else, rather than attempting to tamper with the process that governs carriers that are providing cell phone coverage now.

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