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Google signals it will prepare to bid in 700Mhz spectrum auction

Alfredo Padilla Published on November 16, 2007 Comment on this

Ars Technica is reporting that Google has issued a statement saying they are making all the preparations necessary to bid in the upcoming auction for the 700Mhz wireless spectrum. This spectrum is being vacated by television stations that will move to an all digital format and is considered prime real estate for wireless providers. The FCC has established open access requirements for the winner of the spectrum, requirements that Google has lobbied heavily for while existing wireless companies opposed them. Google recently announced that it will be developing a mobile handset platform called Android, which may be one reason why it is interested in the wireless spectrum.

There has been a great deal of speculation about Google's mobile strategy. It is widely believed that the company is pursuing future opportunities in mobile advertising and wishes to position itself appropriately to ensure its success in this area. The company has worked assiduously to develop mobile versions of its various applications, including email, calendar and documents and with the development of its Android mobile platform is seeking to ensure that it has a presence on as many mobile phones as possible.

In a statement made to Ars Technical a Google spokesperson said "FCC rules require us to reveal our plans by December 3, and we fully intend to do so. In the meantime, we are making all the necessary preparations to become an applicant to bid in the auction." Google's strategy in bidding for this spectrum is not yet clear. It has assembled a group of existing mobile companies, including wireless carriers like Sprint, as part of its Andriod strategy under the umbrella of the Open Handset Alliance. If Google wins the auction it may cause existing and future partners to fear that Google seeks to compete directly with them.

It is also possible that Google will make a bid simply to ensure that the FCC's minimum bid for the auction is met. The FCC has stated that if a minimum bid of $4.63 billion dollars is not met the spectrum will be put up for auction without the open access provisions in place.