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Wireless Tech

Google Readies $4.6 Billion To Enter Wireless

Google Readies $4.6 Billion To Enter Wireless
July 20, 2007 12:40PM

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While Google has allocated $4.6 billion for the upcoming auction of wireless spectrum, putting the company in direct competition with AT&T, Verizon Wireless, and others, Google is saying that its participation in the auction depends on the FCC adopting "open access" to the spectrum, a notion strongly opposed by several telcos.


The speculation is over about whether Google is interested in directly participating in the wireless world. On Friday, the Mountain View, California-based company said it would participate as a bidder in the upcoming federal auction of wireless spectrum in the 700-MHz band -- to the tune of at least $4.6 billion.

The move puts Google in direct competition with AT&T Relevant Products/Services, Verizon Wireless, and other telecommunications companies.

In a statement, Google did say that its participation would depend on the FCC adopting "a framework requiring greater competition and consumer choice" for the auctioned spectrum. Along with a coalition of other companies and organizations, Google has been urging "open access" rules for the auction.

Open access, according to its proponents, could mean that you buy a cell phone, load any software you want on it, and then choose your carrier. This is different from the current system Relevant Products/Services of "locked" cell phones in the U.S., where you get your phone and services from the carrier.

Four Types of Open Platforms

Earlier this month, Google sent a letter to the FCC in which it said there were four types of open platforms that would serve consumers' interests, regardless of what company wins the auction.

These platforms include open applications and open devices, where any legal device, application, or service Relevant Products/Services could be used by consumers on the auctioned bandwidth. The platforms also include open wholesale services and open network Relevant Products/Services access, where resellers could buy bandwidth wholesale and third parties could interconnect at any technically feasible point.

Support for open access received a boost earlier this month, when FCC Chair Kevin Martin circulated a proposal for auction rules that called for an "open platform." At the time, he told USA Today that, if his proposal were adopted, the auction winner would need to provide "a truly open broadband network" in which a consumer could "use any wireless device and download any mobile broadband application, with no restrictions," except for illegal or malicious software.

According to reports, Martin's proposal doesn't designate all of the spectrum for sale as open access, and it doesn't require that third-party companies be allowed to buy bandwidth wholesale.

Google, AT&T, and Verizon

On its public policy blog, Google Telecom and Media Counsel Richard Whitt initially applauded the reports of Martin's proposal. However, in a letter to Martin released Friday, Google CEO Eric Schmidt applauded Martin's "leadership and courage" but said that his "current draft order falls short" in that it does not include the four types of open platforms. (continued...)

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