Google makes $4B pledge to 700 MHz

Google said today it has promised to spend a minimum of $4.6 billion in bidding for spectrum in the FCC’s upcoming 700 MHz auction – provided the commission agrees to Google’s version of auction rules.

In a letter to FCC Chairman Kevin Martin, Google CEO Eric Schmidt said the company is making the financial commitment to “to address unsupported claims about any impact from adopting open platforms conditions.”

The conditions Google is seeking were spelled out in a July 9 filing with the FCC and include:

• Open applications: Consumers should be able to download and utilize any software applications, content, or services they desire;
• Open devices: Consumers should be able to utilize a handheld communications device with whatever wireless network they prefer;
• Open services: Third parties (resellers) should be able to acquire wireless services from a 700 MHz licensee on a wholesale basis, based on reasonably nondiscriminatory commercial terms; and
• Open networks: Third parties (like internet service providers) should be able to interconnect at any technically feasible point in a 700 MHz licensee's wireless network.

Thus far, Martin has proposed an open device policy, which would allow consumers to buy any handset they choose and use it on the 700 MHz network, instead of having to buy devices from their wireless provider. Earlier this week AT&T endorsed that proposal.

That is not enough to satisfy Google’s openness requirements, Schmidt said in his letter to Martin. “The current draft order falls short of including the four tailored and enforceable conditions, with meaningful implementation deadlines, that consumer groups, other companies and Google have sought,” Schmidt stated.