FCC Goes Halfway On Opening 700 MHz Spectrum

The FCC has set rules for the upcoming auction of 700-MHz spectrum and they went halfway on the four open access principles that Google and others had called for. The agency said yes to "open devices" and "open applications," thus requiring the auction winner to permit consumers to use any device or application on the network. But the FCC turned down "open services" and "open networks," so the winners will not be obligated to let others buy access at wholesale prices in order to offer network services. This vote would seem to mean that Google won't bid in the spectrum auction. Ars has a more in-depth look at the outcome.

Google May Bid Yet

[LionKimbro]

This vote would seem to mean that Google won't bid in the spectrum auction.

Only if you aren't paying attention--

Read the top of this page [com.com] in this interview: [com.com]

Google has recently said it would bid on the 700MHz spectrum only if the FCC guarantees certain open-access principles, including open access for companies wanting to buy wireless capacity wholesale. Does this mean that Google won't bid on spectrum if the rules aren't adopted?

Sacca: To be clear, what we said was not exactly that. What we said was that there had been some concerns that somehow imposing these openness principles on the spectrum might diminish its value at auction. And we wanted to reassure the FCC that embracing a path of full openness in the interest of users and the interest of consumers would not reduce the total revenue of the auction. And we wanted to put our money where our mouth is, and we are putting our money where our principles are. So we committed to spending a minimum of $4.6 billion in the auction, if they adopted all four principles.

So it's not out of the question that Google would participate in the auction, even if the FCC doesn't adopt all four principles?

Sacca: We are deeply committed to changing this industry for the benefit of end users.

Re:Abolish the FCC!

[Anonymous Coward]

The powerful people rule. Look into Mexico, Iraq and Afganistan.

Re:Google May Bid Yet

[FleaPlus]

Also, on Google's Public Policy blog they flat-out say they haven't decided yet if they'll bid or not:

http://googlepublicpolicy.blogspot.com/2007/07/sig ns-of-real-progress-at-fcc.html [blogspot.com]

Just two months ago, the notion that the FCC would take such a big step forward to give consumers meaningful choice through this auction seemed unlikely at best. Today -- thanks in no small part to broad public support for greater competition -- the FCC has embraced important principles of openness, and endorsed the unfettered workings of the free market for software applications and communications devices. Moreover, over the last few weeks several leading wireless carriers have reversed course and for the first time acknowledged our call for more open platforms in wireless networks. By any measure, that's real progress.

By the same token, it would have a more complete victory for consumers had the FCC adopted all four of the license conditions that we advocated, in order to pave the way for the real "third pipe" broadband competition that FCC Chairman Kevin Martin has been touting. For our part, we will need time to carefully study the actual text of the FCC's rules, due out in a few weeks, before we can make any definitive decisions about our possible participation in the auction.

Re:Google May Bid Yet

[Ewan]

You must be looking at the wrong Google then, or the wrong AT&T

Maybe this will help:

http://finance.google.com/finance?q=google [google.com]
http://finance.google.com/finance?q=NYSE%3AT [google.com]

The part you want is 'Mkt Cap' where you'll find google is at $158 Billion and AT&T is at $241 Billion, and AT&Ts net income is over twice Google's.

Re:Google May Bid Yet

[Dun Malg]

What will happen is AT&T and Version will only bid high on the major areas with population and let the rest go by the way.

The frequency segments being offered are not available in separate pieces geographically. When you buy (say) 710mhz, you get it nation-wide. Mod parent down. Post is misleading, not insightful.