Google has officially announced that it intends to bid for the right to C Block of the 700Mhz Spectrum:
As part of the nationally mandated transition to digital television, the 700 MHz spectrum auction — which begins January 24, 2008 — will free up spectrum airwaves for more efficient wireless Internet service for consumers. Advocacy by public interest groups and Google earlier this year helped ensure that regardless of which bidders win a key portion of the spectrum up for auction (the so-called “C Block”), they will be required to allow their users to download any software application they want on their mobile device, and to use any mobile devices they would like on that wireless network. The winner must ensure these rights for consumers if the reserve price of $4.6 billion for the C Block is met at auction.
The first point is that they have successfully gotten the Feds to mandate open access, which immediately reduced the value to a potential bidder. However by their actions they have guaranteed that the open access rule will happen. There is a clause in the policy that:
If contingent subsequent bidding is necessary for licenses for the C Block, the Commission will offer C Block licenses without open platform conditions and based on different geographic areas and spectrum bandwidth.
This means that if the reserve price is not met then it can be offered again without the open access requirement. This was probably inserted under pressure from the carriers who argued that the open access rule will reduce the value of the license below the $4.6B. What this meant was that Google needed to participate in order for the open access rule to apply. I know that everyone is excited for Google to not only own a major spectrum but also to make good on the promise of open airwaves. Imagine a world of cheap laptop data rates, as much mobile VoIP as you can eat, new and innovative Linux tablets like the Nokia 770 and 810 that can really fly from anywhere, basically a low cost open ubiquitous network where innovation can go crazy. It would be nothing short of the re-invention of the Internet, only this time wireless…
