[Infowarrior] - Google can bid in wireless auction: regulators

[Richard Forno]

Google can bid in wireless auction: regulators
Mon Jan 14, 2008 6:36pm EST

By Peter Kaplan

http://www.reuters.com/article/businessNews/idUSN1447941620080114?feedType=R
SS&feedName=businessNews&rpc=23&sp=true

WASHINGTON (Reuters) - Communications regulators have cleared Google Inc
(GOOG.O: Quote, Profile, Research) to bid in an upcoming auction of coveted
wireless airwaves, according to auction documents released by the Federal
Communications Commission on Monday.

Google was among a list of potential bidders released by the FCC that have
made a required up-front payment and have been cleared to take part in the
high-stakes 700 megahertz wireless auction.

The auction is scheduled to begin on January 24 and expected to raise at
least $10 billion for the U.S. government from airwaves being returned by
television broadcasters as they move to digital from analog signals in early
2009.

As expected, the list of qualified bidders also included U.S. wireless
providers AT&T Inc (T.N: Quote, Profile, Research) and Verizon Wireless, a
joint venture of Verizon Communications Inc (VZ.N: Quote, Profile, Research)
and Vodafone Group Plc (VOD.L: Quote, Profile, Research), as well as
ventures involving EchoStar Communications Corp (DISH.O: Quote, Profile,
Research), Cablevision Systems Corp (CVC.N: Quote, Profile, Research),
Qualcomm Inc (QCOM.O: Quote, Profile, Research) and Microsoft Corp (MSFT.O:
Quote, Profile, Research) co-founder Paul Allen.

On a separate list of potential bidders that did not qualify for the auction
was a venture affiliated with Frontline Wireless, a start-up that had
proposed to build a national network using a block of spectrum to be shared
with public safety agencies.

A Frontline official said last week that Frontline was "closed at this time"
and declined further comment.

The 700-megahertz signals are valuable because they can go long distances
and penetrate thick walls.

The spectrum is to be auctioned off in several different blocks, ranging
from smaller regional blocks to large, nationwide ones.

Up-front payments for the spectrum licenses can range from several thousand
dollars to more than $100 million, depending on the size of the license a
company is seeking.

The auction is seen as a last opportunity for a new player to enter the
wireless market. Google and other Silicon Valley leaders see the wireless
spectrum as a way to create more open competition for mobile services and
devices than those available on existing networks.

(Editing by Andre Grenon)

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