Google Planning to Bid on 700MHz Spectrum

Internet giant Google is apparently going to make a serious effort to buy a swath of the 700MHz wireless spectrum going up for auction in January.

Back in July, Internet giant Google raised eyebrows by saying it would guarantee a bid of $4.6 billion in the FCC’s upcoming 700MHz wireless spectrum auction if the regulatory agency would adopt four “openness principles” Google felt were critical to the development of wireless applications and competition. Although FCC didn’t adopt Google’s principles—and plans to enforce less-expansive openness polices on only a portion of the spectrum up for auction—Google seems to be plowing ahead. According to reports, the company is getting ready to bid in 700MHz spectrum auction, and may do so without any mobile operators on board as partners.

Although Google is running a test wireless network at its headquarters in Mountain View, California, industry watchers don’t generally believe Google is seriously looking at buying spectrum in an effort to become a mobile network operator. Instead, Google’s interest in the spectrum is more likely tied to its efforts in mobile applications, mobile advertising, and it’s just-introduced Android mobile phone platform. The four provisions of network openness Google proposed to the FCC may also point to Google’s plans: instead of operating a mobile network itself, Google may be intending to lease use of the spectrum to other operators and developers, on the condition they comply with Google’s openness principles. In theory—and if Google or other partners were willing to build out the required network infrastructure—such a move could kick-start the development of true mobile broadband service in the United States. Consumers wouldn’t be tied to single providers for key services, and—with an open platform like Android—an ecosystem of developers and applications could emerge that would give walled-garden carriers a serious run for their money.

The FCC requires potential bidders to reveal their intentions by December 3, 2007.