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Google Inc said that it was willing to meet the minimum required bid stipulation
of $4.6 billion to participate in a major US auction of wireless spectrum airwaves
provided the regulators require the winning bidder to offer to resell access to
some of the airwaves to competitors on a wholesale basis. Google
also wanted the commission to stipulate that other companies should be allowed
to interconnect "at any technically feasible point" with the winning
bidder''s network. Google
and some consumer advocates have pushed for a list of open-access conditions for
the airwaves and argue that the wholesale requirement should be among them to
promote more competition for wireless service. Google
says an open telecommunications network would drive internet usage, something
that would directly benefit Google''s business strategy of selling advertising
over the internet. However,
the major wireless carriers say that a requirement to resell the airwaves would
reduce the value of the airwaves and have criticised the search engine firm of
attempting to rig the auction in its favour. AT&T
says that Google''s criteria would eliminate competition, while the No. 2 wireless
service provider, Verizon Wireless says any conditions on the auction would be
providing "corporate welfare" for Google. Wwireless
carriers currently restrict the models of cell phones that can be used on their
networks and the software that can be downloaded onto them, such as ring tones,
music or Web browser software. The
airwaves to be sold in the 700-megahertz band are being returned by broadcasters
who are moving from analog to digital signals early in 2009 and are considered
valuable as they can travel long distances and penetrate thick walls. The
auction of the 700-mHZ airwaves, to be held later this year, is seen as the last
opportunity for a new player to enter the wireless market. If
bidders do not meet the minimum bid amount of $4.6 billion, the auction would
be run without
the open-access conditions.
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