Google to bid on 700MHz spectrum if conditions are met

Not that we weren't expecting anything less, but it looks like the bidding in the upcoming 700MHz wireless spectrum auction is set to heat up, with Google now saying that it'll join in on the action, although only if certain conditions are met. Specifically, Google is asking for the FCC to ensure that the spectrum allows for "open applications, open devices, open networks, and open services" -- demands that seem to be pretty much in line with FCC Chairman Kevin Martin's recent statements on the matter. If the FCC follows through on that, Google says it's prepared to put up some $4.6 billion for the wireless spectrum. Well, there goes our plans.

[Via PhoneScoop]

[Majd @ Jul 20th 2007 12:06PM]

YES!

[Ireland @ Jul 20th 2007 1:25PM]

I rather Google control the wireless world, than those existing. crumby, controlling service providers. Woot for open everything!!

[DakStaka @ Jul 21st 2007 8:23AM]

I reckon... just suggesting the open standard they may be thinking of is 802.16e in 700MHz band.

[Robert Kieffer @ Jul 20th 2007 12:13PM]

With Google on the FCC's side now (pretty much), I think theres a very good chance this spectrum could become completely open and free. Now to get devices that utilize it...

[Daniel @ Jul 20th 2007 12:20PM]

Do you think Google will continue to make money using advertising on devices that utilize the 700MHz spectrum or are we looking at some kind of Google subscription service?

[TJJ @ Jul 20th 2007 12:19PM]

i've heard news about this auction for a while now, and i'm still a tad confused as to what it means. this "open" band means ppl will be able to connect without service plan as long as your device has a proper radio, or am i way off?

[Robert Kieffer @ Jul 20th 2007 12:23PM]

I believe thats what he means. Kind of like how WiFi is. You just turn it on and connect. Except they basically want a nationwide network of this, not just various hotspots.

[dashiel @ Jul 20th 2007 12:29PM]

the other shoe drops. let's just put it this way: the exclusive 5 year deal between apple and at&t wasn't at&t's idea.

[tehpwnmstr @ Jul 20th 2007 12:31PM]

now for some devices that will be compatible....any takers. no...oh you say you want the network to be put up first. yeah that makes sense.

[Todd @ Jul 20th 2007 12:33PM]

Please god let Google have the 700 mhz so I can forget about whether or not I have a wifi signal, or what it cost, or if I have installed the correct piece of proprietary software....and just focus on the task at hand.

[Todd @ Jul 20th 2007 2:36PM]

Correct

[Richard Garfinkel @ Jul 20th 2007 12:42PM]

I think it's very unlikely that Google will get the spectrum. They're offering to put down the minimum reserve price if their conditions for the auction are met, so that the government has a guaranteed sale. I expect that even with the drawback of purchasing an open spectrum, they'll be outbid, and I don't think they have incentive to actually own the spectrum -- it's infrastructure they don't want to deal with.

But what this does mean is that you won't have to buy a new phone every time you switch carriers and you won't have crippled phones and you'll have reception anywhere there's a 700 MHz carrier.

[Shermie @ Jul 20th 2007 1:37PM]

Common business is that they probabaly have a much higher price in mind. I think this is just a teaser to weed out competition.

[Michael Epstein @ Jul 20th 2007 2:21PM]

"Google says it's prepared to put up some $4.6 billion for..." "infrastructure they don't want to deal with" ??

"I don't think they have incentive to actually own the spectrum" --- Why not?

Google has more money than most other Communications giants. Why would they not want their very own slice of such highly coveted spectrum?

[Richard Garfinkel @ Jul 20th 2007 2:30PM]

Michael,

Google's biggest strength is its software, and that's where there profits lie. Their interest is in the spectrum being open so they can provide software that operates on it. If they have to buy the spectrum to make that happen, I think they will, but they'd be much better off if they let somebody else buy it and just make the software.

[ahrenl @ Jul 20th 2007 3:13PM]

Michael,

A/o EOY 2006
Google Current Assets: $13.039B
Verizon Current Assets: $22.538B
AT&T Current Assets: $25.553B

More money they do not have..

[Jason @ Jul 20th 2007 7:15PM]

ahrenl, Google dwarfs MOST telecoms and is more than halfway to being at the top. If they actually had any telecom assets they would probably be worth more than the current giants.

Google for the win!

Total Current Assets as of 2006 (in millions)

AT&T - 25,553
Verizon - 22,538
Deutsche Telekom AG, parent of T-mobile - 15,951

Google - 13,039

Sprint - 10,304
Qwest - 3,654
Altel - 2,032

[Erik @ Jul 22nd 2007 12:18PM]

Assets are meaningless. You need to look at net tangible assets. You can't leverage goodwill nor can you leverage what is already leveraged:

Google $15B
ATT -$11B
Verizon -$13B
Sprint -$6B

[Neil H. @ Jul 21st 2007 7:35PM]

ahrenl and Jason:

The current assets figures you cited include things like inventory and receivables, which telephony companies tend to have much more of than Google but aren't really relevant to an auction. I suspect the more relevant statistic might be "Cash and Short Term Investments", which Google has substantially more of:

Google: $11,935,920

AT&T: $2,364,000

Verizon: $3,450,000

[jalapeno @ Jul 20th 2007 1:07PM]

Go Google! Just do no evil please.

[R. C. @ Jul 20th 2007 1:07PM]

IF goolgle uses it for a wi-fi like device. They might just use it for phone.

If they use it for wi-fi/both, and are able to deploy it, it will be the best thing scense.... something really good.

[riggs @ Jul 20th 2007 2:43PM]

since google?

[R. C. @ Jul 20th 2007 1:48PM]

Exactly!

[zuricher @ Jul 20th 2007 1:26PM]

coming soon: google-communicator(TM) -> google ebook-reader / phone / gps / pmp / cam / etc. for free... downside: location aware google ads taking an inch of your screen. but pssst just don't tell the analysts

[snowglyder @ Jul 20th 2007 1:56PM]

I hope they get it, but I bet other carriers will do everything they can to get this, just so they can keep a hold on the market. I wonder if multiple carriers will combine funds to outbid Google...

[charles @ Jul 20th 2007 1:58PM]

I can see it now... you get unlimited sms and email for free of course, google can make plenty of money off the contextual ads just like in gmail, except now they can cross it with your geographic location using either signal triangulation or gps. Surfing the internet might be free now too, since they'll get a shitload in ad revenue from places like McDonalds, Starbucks, etc, that would appreciate have a nice ad, perhaps with directions from where you're standing, pop up on your screen. You might have pay for voice, since it requires more bandwidth and offer less opportunity for advertisement than any of those other options... but at least they could have voicemails go straight to your gmail account for perpetual storage like email and sms instead of needing to be deleted every 21 days or whatever for current carriers. They could run the voice through voice recognition software and make a transcript the body of the file so you can search through and they can have contextual ads, even taking into account where you physically were when you had the convo

[Steven @ Jul 20th 2007 2:15PM]

What could they do with the 700Mhz band? I thought all the "potential" future options for connectivity were way outside of this band (WiMax, Wifi, etc). I haven't heard of anything that actually uses these frequencies... or am I missing something?

[Logik @ Jul 20th 2007 2:29PM]

http://arstechnica.com/news.ars/post/20070521-prof-wants-fcc-spectrum-auction-winners-to-support-wireless-network-neutrality.html

[mattnico @ Jul 20th 2007 2:27PM]

There are no devices that use this spectrum... except, of course all of the analog TVs in this country.

http://gigaom.com/2007/03/14/700mhz-explained/ scroll to the bottom and check out the cost comparison of using the 700MHz band.

[Neal @ Jul 20th 2007 2:32PM]

Great little article, seeing the coverage of 1,000 sq miles really hits home the ability of this area of the spectrum and how pervasive it can be at a much lower cost compared to current technologies. I see this slowly making the cell companies having to possibly drop data altogether with this kind of coverage if the speeds can keep pace, simply due to how cheap it will be.

[Charbax @ Jul 20th 2007 2:51PM]

Isn't WiMAX the perfect technology to use on 700MHZ?

Anyone know which bandwidth Google will be able to provide using WiMAX on that spectrum?

Everyone will sooon get free Mobile 802.16e WiMAX on the 700MHZ spectrum, that is cool. I hope European countries do exactly the same also.

I wonder if 2500MHZ Mobile WiMax equipment that Sprint and Clearwire and deploying, if that equiment can be made compatible also with the free and open 700MHZ Mobile WiMAX network.

[Richard Garfinkel @ Jul 20th 2007 3:25PM]

It won't be free. Not if it requires a 4.6 billion dollar investment.

[Charbax @ Jul 20th 2007 3:29PM]

Well then the FCC could just simply give it to Google for free by having the condition wireless broadband access should be free for all Americans.

The deployment could be very cheap by installing FON type of routers in peoples homes that would have 700MHZ WiMAX as well as normal FON WiFi.

And it should also be part of the FCC rules that no traditionnal broadband provider should prevent anyone from installing FON WiMAX boxes to their adsl, cable or fiber broadband internet connection.

[David @ Jul 20th 2007 3:14PM]

You know, in addition to all the analog TV, this frequency band that's about to be retasked is host to quite a bit of wireless communication used in entertainment. The wireless mics, headsets, and control for wireless effects are all going to have to be rethought. I was just talking to a Vegas TD who is at a complete loss as to what his show will do. Between the above stated tasks they are running hundreds of individual frequencies in the show - all in the spectrum about to go to auction.

[UIGuy @ Jul 20th 2007 3:39PM]

This is pretty funny... Google says they "want it" but only under "these conditions". So they get the FCC to verify the conditions...

Google really doesn't "want it", they just "want the conditions". By requesting verification (and probably receiving it), they have obligated other bidders to something they want anyways. They don't want to maintain this network - that would be sloppy - they just want to use it for their purposes. So, why buy the cow when the milk is free?

It is much more advantageous - from their perspective - if they were able to get what they want without having to pay for it...

Genius.

[Josh @ Jul 20th 2007 3:39PM]

Actually - Martin's proposal is a "fake" open access that is really designed to placate big telcom folks like ATT - What Google is calling for is much more open, and much more revolutionary. We need open access like that which Google is calling for - not the closed off, and partial open access that Martin suggests:
http://www.savetheinternet.com/blog/2007/07/10/will-martin-really-open-the-airwaves/

[jamesc @ Jul 20th 2007 3:43PM]

I wish I had four point SEVEN billion.

[darter9000 @ Jul 20th 2007 8:08PM]

I wish I had point seven billion...

[James @ Jul 20th 2007 5:11PM]

I like Google and all, but I'd like to make a quick point: if the FCC "gave" the spectrum to Google, or added restrictions to its use such that Google would be the only company that thought it was worth that much money, there is still a loser: the American taxpayer. If, say, AT&T were to pony up more money, every extra dollar would be a buck less in the Federal debt (or tax bill, depending on your economic school of thought). But if the FCC won't let AT&T use it how they want to (presumably to expand for-pay cell phone service), the price the spectrum fetches at auction will be artificially constrained, which is money coming out of your pocket and mine.

It might still be worthwhile to impose an "openness" clause on the sale -- in many senses of the phrase, the entire spectrum is "public property" -- but precedent and practicality suggest that most of the spectrum is auctioned off to be managed by the private sector. I think if the government wants to make part of the spectrum "public" (or we the people want to *make* the government do so), it should just be declared public outright, instead of having a nominal auction with big caveats.

[Randomness @ Jul 20th 2007 8:24PM]

To the posters above comparing assets, Total assets does not mean cash they can spend to buy spectrum. Assets for AT&T can mean the value of all of their telecom infrastructure. They can't exactly sell it to buy spectrum, now can they? While a company like google doesn't have lots of physical assets, they might have more in cash and investments. You would need to analyze the companys' financials a lot more closely to determine each's position.

[JLTate @ Jul 21st 2007 2:19AM]

Why am I the only one worried about Google, especially with now this? Tell me one thing in recent years that they've done that complies with "do no evil"...

Over 10 years ago, Stan Rapp and Tom Collins, international marketing consultants, stated that the average American is "bombarded by five-thousand advertising messages per day".

Resist!

[Solomon @ Jul 21st 2007 4:26PM]

it just occurred to me, that THIS could be a sign of the Googlephone