IP Democracy: Google, AT&T, Verizon Talk About Spectrum Auctions

Now that the gag rules under the FCC's 700 MHz auction process have been lifted, the big winners in the all-important spectrum grab are talking. But the highest profile, and arguably the most influential, participant in the closely watched proceedings, Google, has the most interesting things to say.

Google counsel Rick Whitt and Joseph Faber posted this item on the company's official blog contending that despite speculation, the search giant really did intend on winning the C block licenses on which it bid. Many commentators thought Google was merely playing the game to save face because it had put up such a fuss about applying open access requirements to that slice of the spectrum, which ultimately went to Verizon.

We were also prepared to gain the nationwide C Block licenses at a price somewhat higher than the reserve price; in fact, for many days during the early course of the auction, we were the high bidder. But it was clear, then and now, that Verizon Wireless ultimately was motivated to bid higher (and had far more financial incentive to gain the licenses).

Despite losing the bid (and even though it was willing to go the distance, Google has to be relieved it doesn't have to learn the wireless business in short order), Google will press ahead to make sure U.S. wireless broadband services develop in a more open fashion. It will participate in plans surrounding the failed D block bid, advocate freeing up the so-called "white spaces" and, of course, keep working on its open Android mobile platform.

AT&T issued a press release this morning noting that its wins in the (non-open) B block spectrum combined with its earlier purchase of Aloha's 700 MHz spectrum give it 100% coverage in the top 200 markets and allows it to reach 87% of the U.S. population. While the company plans to roll out 3G services to a huge swath of the country by year-end 2008, the newly acquired spectrum and AT&T's more globally oriented GSM spectrum position the company for bigger and better 4G roll-outs down the road, AT&T says.

4G is what it's all about, according to a Verizon spokesperson quoted in this morning's WSJ. Although AT&T thinks it has an advantage because its B block spectrum is not "encumbered" with open access rules, Verizon thinks the open access part of the package will draw developers who could help speed 4G.

(The WSJ article notes a curious fact that has also caught my attention: Dish Network, the ailing DBS provider, came out of the auction process a big winner. Dish won enough licenses to become an almost national wireless provider. What Dish plans to do with the airwaves is unknown.)

Update: Verizon Wireless has issued its own press release that offers more details on what it plans to do with the spectrum and spelling out the specific markets/licenses it won in the C, A and B blocks.

Verizon Wireless plans to launch its LTE network in the 700 MHz spectrum in the 2010 timeframe. The company said the breadth of the national C-block spectrum footprint, all in a single band and with a depth of 22 MHz, provides a speed and performance advantage that will be ideal for connecting a variety of consumer electronics, from wireless phones to medical devices to gaming consoles.

The company also held a conference call this morning to discuss its 700 MHz wins. Replay of the call is here.

Posted by Cynthia Brumfield on April 4, 2008 8:26 AM to IP Democracy