We know, we’ve been talking about Google’s intention to bid on the upcoming FCC 700Mhz spectrum auction, and Google CEO Schmidt even confirmed his company’s intent to do so. But, according Bloomberg, some analyst think that Google isn’t planning on submitting a bid beyond the initial $4.6 billion minimum opening-bid. Is Google’s bid for the 700Mhz auction just for show?
These analysts are saying that Google could have simply talked a big game and feigned interest in snatching up the 700Mhz spectrum in order to affect policy changes like the controversial open-access regulations that were placed on the spectrum by the FCC. Google’s commitment to bidding on the spectrum could end at the opening bid – after which Google will simply let the industry big-dogs duke it out for the winning bid. Afterall, Google will still have an open network to provide its services regardless of who wins the auction. And, with Verizon Wireless’s recent announcement that they’ll be opening up their network to “any app, any device” in 2008, Google could see little benefit to actually owning the 700Mhz airwaves.
“They’re going to get what they want without having to put up billions of dollars,” said Todd Dagres, general partner at Spark Capital, adding that “the ideal scenario is to get the openness so [Google] can offer their services. I’m not sure they want to be a wireless carrier.”
We’re cautious to put our faith in this kind of speculation – everything we’ve heard about Google’s plans seems to indicate that they’re serious about winning the spectrum. But, it makes a lot of sense for Google to “put [their] money where [their] principles are” in an opening bid, and then sit on the sidelines as they wait for their open-network to go live.
[Via: Bloomberg]