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Three lawmakers complained Tuesday that Google "maneuvered" its way into an open wireless network without having to come up with a winning bid in the U.S. Federal Communications Commission's recently completed 700MHz spectrum auction.
U.S. Representatives Cliff Stearns and John Shimkus, both Republicans, suggested Google out-maneuvered the FCC when the agency required the winner of about a third of the spectrum that was auctioned to operate under open-access rules. A third lawmaker, Representative Eliot Engel, a New York state Democrat, also said he was concerned that after the auction ended, Google said its primary goal in bidding in the auction wasn't to win, but to make sure the open-access rules happened.
Most lawmakers speaking at a hearing on Tuesday gave mixed reviews of the 700MHz auction, which wrapped up in March. Many Republicans voiced concerns about the money raised, and many Democrats complained that large incumbent carriers won much of the spectrum.
Google promised to bid at least US$4.6 billion on the 22MHz C block of spectrum if the FCC would require the winner to allow outside devices and applications to operate on the network, but Verizon Wireless outbid Google and won most of the C block licenses.
Two Google officials, in an April 3 blog post, said the open-access rules were their top priority for the auction.
"Based on the way that the bidding played out, our participation in the auction helped ensure that the C Block met the reserve price," wrote Richard Whitt, Google's Washington, D.C., telecom and media counsel, and Joseph Faber, Google's corporate counsel. "In turn, that helped increase the revenues raised for the U.S. Treasury, while making sure that the openness conditions would be applied to the ultimate licensee."
Stearns, from Florida, complained Tuesday that the FCC allowed Google to manipulate the auction and get a "free ride" on the C block spectrum. Google in November launched a mobile operating system project along with the Open Handset Alliance
"I suspect that if Google had been interested in more than just maneuvering within the system, it could have prevailed in the C block and become a new [wireless] entrant," Stearns said during a hearing in the House of Representatives' Subcommittee on Telecommunications and the Internet. "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 maneuver this way anyway."
Comments (2)
Let's check..By mwkingsandiego on April 16, 2008, 12:02 pmSo Google played within the rules, got consumers open access, and that's somehow wrong? I don't get that. However, I do think it would be interesting to check the...
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If you don't want an auction that can be played...By Anonymous on April 16, 2008, 9:04 amIf these representatives don't want an auction that can be played, they should see to it that the FCC hires at least a FEW competent people. The current crop of...
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