Google wins 700mhz FCC auction

Google wins 700mhz FCC auction

Summary: Of course there is no way yet to say if Google is the current high bidder, but we do know for sure that Google has won. The auction has now surpassed the reserve price of $4.


Of course there is no way yet to say if Google is the current high bidder, but we do know for sure that Google has won. The auction has now surpassed the reserve price of $4.6bn (sitting at $4.7bn) according to the New York Times. This is significant because now the winner of this auction, even if it's not Google, has to "follow the rules" that Google proposed. What are the rules? the FCC will force the winning bidder to allow any device from other carriers to run any applications on their network -- perfect for the Open Handset Alliance.

If there is only one bidder left in the auction, there will likely be no more bids, but according to the New York Times article, we should know more by this afternoon.

For complex reasons, if no new bid in the first auction arrives this morning, it would mean almost certainly that only one company is left in the bidding. With this bid, we still don’t know. But we should know more early this afternoon. If there is, in fact, only one bidder, it would have no logical reason to bid any more, now that it has hit the $4.6 billion minimum. If another bidder is still interested, it will have to keep bidding today.

Topics: Google, Government, Government US

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  • Huh? When did the FCC agree to this?

    When did the FCC bend over and allow Google to dictate anything?
    • Google garanteed a minimum buy of 4.6 Billion

      I'm sure Google agreed to garantee a purchase price of 4.6 billion regrdless of the other bids if the FCC would agree to the idea.

      My take earlly on was that the government would only agree to those terms if the bid price was 4.6 Billion or better, which meant google [i]had[/i] to pony up if they wanted to have any chance of their open hand set idea to work.

      If the winning bid was 3.2 Billion, those rules would not be invoked. It looks as though Google may have miscaculated and purchased everyone free 700 MHz access.
      • Yes, I know what Google said, but when did the FCC

        agree to bend over and accept their conditions? Frankly, if they did its time to file a law suit against the FCC. No one, or no group should be allowed to set the conditions of a PUBLIC bid selling PUBLIC resources.
        • RIGHT-ON !... Why should the public have any say over public resources - NT

          • But I thought

            the Patriot act was still in place so I didn't have any say over what happens with public resources. Or a vote that counted, for that matter.
        • Let me get this straight.

          You want to sue them for insuring that the public bid for public resources would be equally accessible to the public? Is that what you're saying?

          Google (deep pockets) tells the FCC (red tape central, part 42 - lobbyist's puppet, part 19 - Censorship Central, part 2) that they'll guarantee a minimum benefit to the public (lotsa $$$) if the FCC will agree to insure another benefit to the public (open access) as a stipulation of the public sale (auction) of the public's goods (radio spectrum).

          Dr. John
    • GARETT, how about an answer?

      When did the FCC allow Google to dictate the terms of a PUBLIC auction selling PUBLIC resources belonging to the people of the US?
      • Ok little one, what are you whinning about now?

      • Re: GARETT, how about an answer?

        [i]When did the FCC allow Google to dictate the terms...?[/i]

        This is not new. Powerful interests with lots of money dictate public policy all the time. It's sad, but the public is served only when their interests and the public's interests happen to intersect.

        As far as the policy, certainly you don't have anything against it, do you?

        none none
    • Google didn't dictate anything.

      Google made several proposals to the FCC. The FCC accepted some and rejected others.

      Essentially, Google said that they'd guarantee that the sale price of the spectrum would not be less than $4.6B, but only if open access were required. The proposal for the open access was accepted based on the sale price of the spectrum surpassing $4.6 billion.

      If it were not for Google's proposal, the sale of the block would probably not have exceeded $4B.

      Let's say you decided to sell your house at an auction and it's worth $150K. Let's then say that I guarantee you a sale price of $165K, but only if part of the land is required to be available for access to the parcel behind that has no road access.

      It's up to you whether or not to attach the condition to the auction. If you do, you guarantee that you get more than the house is worth. If you don't, you might not get the full value of the house. Either way, it's your decision and not mine. Just as the condition placed on the spectrum auction was the decision of the FCC, and not Google's.
      • When did that happen?

        "The proposal for the open access was accepted based on the sale price of the spectrum surpassing $4.6 billion."

        When did that happen? To my knowledge the FCC never made such an agreement.
        • Back in August of 2007

        • No_Ax_to_Grind....Always Certain, Sometimes Correct - NT

  • RE: Google wins 700mhz FCC auction

    The FCC didn't bend over, Rupert. Of course, you'll fire all the meaningless insults you can at them, considering that you thought Microsoft could somehow stop Google from hiring Kai Fu Lee in a timely matter.

    Kai Fu Lee can be seen on Google's executives list of course...and Microsoft was marginalized.
    • What are you talking about?

      One, I do not understand who you are replying to, as Kai Fu Lee was not mentioned in the story above was he? who is Rupert?

      Marginalized? Well if you want to see it that way, go ahead, I doubt anyone, including Microsoft really cares anymore, or ever saw it that way. They just wanted to slow down a corporate spy running away with proprietary information (like Google would do if one of the people who works on their secret code suddenlly jumped ship to Yahoo or MSN)

      [i]Kai Fu Lee can be seen on Google's executives list of course[/i] and from what I see, all that money and they really got little in return.

      Now, back to the story at hand...
      • Nothing at all, he's one of my coat tail riders

        and has made up a nic to impress me with his loyalty as a fan. Yes its sad but it is what it is...
        • And he chose Rupert?

          As in Murdock? Wow! He's really impressed with you.
          Dr. John
  • Spectrum only half the battle

    Anyone can BUY spectrum, the challenge is building/operating a network that outperforms and is more efficient than the competition. Likewise you will have to provide a lot of customer service--something that google really lacks.

    If google wins, all I can say is: Good Luck, you're going to need it.