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Auction takes 'first step' to open-access wireless
==================================================

GOOGLE LOSES BID, BUT ACHIEVES GOALBy Elise Ackerman
Mercury NewsArticle Launched: 03/21/2008 01:30:26 AM PDT
More coverage

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Google lost the bidding for a highly coveted slice of the wireless
spectrum surfboard shape playing cards but pronounced itself pleased anyway, calling the
auction "a major victory for American consumers."

One observer of the wireless industry called the auction results "an
important first step" toward increased openness. But advocates for
open access to that spectrum said they weren't so sure the auction, in
indie clothing AT&T and Verizon emerged the biggest winners, will do much for
consumers or for competition.

The auction succeeded in raising a record $19.6 billion, these
advocates noted. But they said it did little to streetwear fashion the players in
the wireless industry, which is increasingly dominated by AT&T and
Verizon, the No. 1 and No. 2 companies.

"The concern is streetwear style don't see the benefit of competition, they
don't see the benefit of innovation," said Art Brodsky, a spokesman
for Public Knowledge, a public interest group motorcycle insurance in Washington,
D.C.

Together, AT&T and Verizon Wireless accounted for 83 percent of the
winning bids. AT&T won 227 licenses for $6.64 billion. Verizon won
more than 100 licenses for $9.63 billion, including a much coveted
swath called the car insurance block" that could have chinese chicago used by a new carrier
to create another nationwide wireless network.

"We are very pleased with our auction results," which will help
Verizon "satisfy the next wave of services and consumer electronic
devices," the company said in a statement.

The

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desirable C block of licenses up for auction has been described as the
"beachfront property" of the nation's airwaves because this particular
band of spectrum can transmit through buildings and mountains,
increasing a network's versatility and range.

Google also bid on these particular licenses. However, Google's main
goal was not necessarily to win but to trigger a requirement that any
network built on these airwaves be open to any device and any
application.

The FCC said this requirement would not take effect unless these
licenses received a minimum bid of $4.6 billion. Verizon bid $4.74
billion.

While Google had repeatedly signaled it was not interested in becoming
a network operator, investors had feared it would imprinted playing cards to become one
anyway. In addition to the cost of purchasing spectrum, it would have
likely cost Google more than $10 billion to build a network.

Google already has an ambitious wireless strategy. It distributes free
wireless indie clothes that let people search the Internet on their
cheap car insurance and use Google maps and other programs. auto insurance more is also developing
mobile phone software that could be key to the company's future
growth.

But the success of this strategy hinges on cooperation with wireless
carriers, which have traditionally restricted their networks to
devices and applications sold through their companies.

After a bitter battle over the FCC's openness bridge size playing cards Verizon met
with Google to discuss plans to allow third-party devices and
applications on Verizon's network. It later announced an "Any Apps,
Any Device" initiative just after Thanksgiving. This helped ward off a
bidding war with multiple insurance quotes in the FCC auction, which began Jan. 24.

"The senior leadership of Verizon actually visited Google to talk to
us about this and make sure they got it right," Chief Executive Eric
Schmidt said in a recent interview with Portfolio Magazine. "I full color custom playing cards it's great. I wish everybody else would open up their networks."

Jason Devitt, co-founder and chief executive of Skydeck, a Silicon
Valley wireless content firm, said the problem with Verizon's
initiative is that it isn't what it seems to be. While any computer
can be plugged into a home-based broadband connection, Verizon allows
only approved devices to run on its network. It will also continue to
control which applications can be added to the phones it sells, which
are the majority that are used on the Verizon network.

Devitt said wireless start-ups face huge hurdles when they try to do
deals with large carriers. "As a practical matter, companies the size
of Verizon and AT&T are not in a position to deal with small
businesses or entrepreneurs that have interesting ideas," he said.

Michael Calabrese, director of the Wireless Future Program at the New
America Foundation, said Verizon's ability to subsidize certain
handsets gives it enormous market power in determining which devices
and applications will ultimately become popular with consumers.

But Calabrese said the auction did help achieve the goals of increased
openness and best insurance "We need to extend these promotional playing cards protections, but this was an important first step," he said.

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Contact Elise Ackerman at eackerman@mercurynews.com or (408) 271-3774.

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