labels: google, telecom
Google wants airwave auction with resale condition news
21 July 2007

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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Google wants airwave auction with resale condition