Google wants airwave auction with resale condition

21 July 2007

Google Inc said that it was willing to meet the minimum required bid stipulation of $4.6 billion to participate in a major US auction of wireless spectrum airwaves provided the regulators require the winning bidder to offer to resell access to some of the airwaves to competitors on a wholesale basis.

Google also wanted the commission to stipulate that other companies should be allowed to interconnect "at any technically feasible point" with the winning bidder''s network.

Google and some consumer advocates have pushed for a list of open-access conditions for the airwaves and argue that the wholesale requirement should be among them to promote more competition for wireless service.

Google says an open telecommunications network would drive internet usage, something that would directly benefit Google''s business strategy of selling advertising over the internet.

However, the major wireless carriers say that a requirement to resell the airwaves would reduce the value of the airwaves and have criticised the search engine firm of attempting to rig the auction in its favour.

AT&T says that Google''s criteria would eliminate competition, while the No. 2 wireless service provider, Verizon Wireless says any conditions on the auction would be providing "corporate welfare" for Google.