As part of the US’ mandated transition to digital television, the 700 MHz spectrum auction – which begins January 24, 2008 – will free up spectrum airwaves for more efficient wireless internet service for consumers.
Bidding for the spectrum will start at a reserve price of US$4.6 billion (A$5.2 billion). Google announced it will enter the auction without the assistance of a partner. Some industry observers had thought the company would partner with a telecommunications firm for the auction.
The auction stipulates that part of the spectrum be used for open access purposes – under which the winning bidder is compelled to give customers the right to download any application they want on their mobile device and the right to use any device they want on the network.
“We believe it's important to put our money where our principles are,” Google chairman and chief executive Eric Schmidt said. “Consumers deserve more competition and innovation than they have in today's wireless world.”
“No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the internet,” Mr Schmidt said.
The 700MHz spectrum is attractive to communications companies as it wavelength travels long distances and easily penetrates obstacles like concrete walls. This means the spectrum requires fewer communications towers and is therefore cheaper.
Regardless, a national wireless network would be expected to cost the owners an additional US$7 billion.
For more Telecommunications news, click here.
