CTIA: Microsoft won’t bid for 700 MHz

SAN FRANCISCO--Microsoft will not participate in the upcoming 700 MHz auction, which will distribute former UHF TV channels to wireless operators for broadband services, Microsoft CEO Steve Ballmer said today at the CTIA Wireless IT & Entertainment show.

The 700 MHz auctions have attracted the attention of prominent non-telco service providers: Google has actively shown interest in the late-January contest, and Apple is reportedly considering bidding. But Ballmer put any rumors about a Microsoft wireless broadband play to rest when CTIA CEO Steve Largent put the question to him directly after Ballmer’s keynote. He flatly said Microsoft has no plans to be a spectrum holder.

“At the end of the day, we may be broader than any company out there, but we have a core competency—we also think operators have a core competency,” he said to applause from the audience. Winning a 700 MHz license would give Microsoft a single spectrum position in a single country rather than a global presence, he continued. And the drawbacks of owning that license would likely far outweigh its market advantages, he said. “It would alienate our customers.”

With Microsoft out as a potential contender, traditional operators may still face many non-traditional competitors in an auction expected to raise more than $10 billion for the federal coffers. Google and Apple have deep pockets and a desire to see their services and hardware proliferate over mobile networks. And Qualcomm may dip back into 700 MHz to gain more spectrum for its MediaFLO broadcast TV service.