Google Plans to Bid 4.6 Billion on 700MHz Band

NickCatal writes "The Wall Street Journal is reporting that Google plans to bid $4.6 Billion on the 700 MHz radio spectrum being auctioned off by the FCC. What is most interesting is that they are not planning on partnering with other companies to raise the cash, they are going to spend their own cash and possibly borrow some. With partners such as Sprint Nextel and T-Mobile in their 'Open Handset Alliance' is this a sign that they are willing to directly compete with the people they courted to join?"

why?

[bzudo]

why disclose how much you are going to bid? that's like playing poker and revealing your cards. i won't google to win, but why let the other guys raise 4.6 billion and 1 penny?

My bet

[WindBourne]

will be that the initial Bid will be for that, but that they will join forces with others, possibly IBM, Apple, etc. to jump this bid up. I think that they want to win this for the simple reason of insurance that ISP can not kill them off. Right now, the Communications/ISP industry is heading towards a gov. issued oligopoly with outrageous prices and lousy service. With an open network, Google can put pressure on all of the industry to move towards an open network. As far as their open system and pissing off their "partners", you did notice that few carriers are there? It is mostly equipment folks. That means that the real partners will be outside of USA. Sprint is doing it, but that does not mean that they will offer it. But if they can have an edge on Verizon and ATT, well, yeah, they will go through with it.

More likely....

[CodeShark]

By ponying up their own cash, they are putting a gun to the heads of virtually every US telco, because it basically says to them "Google's got bandwidth of our own that doesn't pay you one red cent. So we don't have to play ball with any of you."

But if a telco chooses to "play nice" and open their network to the OCA based, presumably uber-cool handset and applications, folks may just stay with an existing provider and then both Google and the Wireless provider both get to make buckets of $$$.

stop the spectrum tax on the airways

[troll -1]

Perhaps the whole problem with the FCC is that they auction the spectrum to the highest bidder.

No wonder providers lock out third party handsets. They just paid billions for the spectrum, they have every incentive to maximize profits.

What would be most beneficial to the consumer is perhaps a company that just sold mobile IP addresses and had nothing to do with selling devices. Let consumers choose their own devices in a competitive market for the bandwidth they purchase. Maybe the FCC should stop thinking about billions of short term dollars and start thinking about what's best for consumers and the industry as a whole.

Re:Shocking!!!

[VeriTea]

No, most licenses are divided into regions (RTA's). You bid a price on each region and then cobble together a network out of the regions you won and the spectrum you can trade to other holders that have licenses in the areas you didn't win.

Re:Shocking!!!

[MindStalker]

No I'm pretty sure with this one the FCC clearly stated is one nation wide license for the entire country.
Most regional license for few a few million. We are talking 4.6 billion here.

Re:Overpriced because

[petes_PoV]

Overpriced? you're kidding, the money being talked about so far is a bargain.

The german mobile auction in 2000 raised over $50Bn (at today's exchange rate). The UK auction in 2001 raised £22.5Bn ($45Bn at todays rate)

These auctions are more profitable than wars - well, for the governments involved. Not for the poor suckers who "win" them and then have to find the cash

references:
http://news.independent.co.uk/business/news/article272264.ece [independent.co.uk]> http://www.nao.org.uk/publications/nao_reports/01-02/0102233es.pdf [nao.org.uk]

Re:Overpriced because

[JackMeyhoff]

Relative yes, but doesnt mean its not overpriced.

Vodaphone admitted they overpaid in the UK auction.

What have they gained from their buy? Shit all really.