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Spectrum Auction Could Be A Game of Chicken
Ardvark writes "Google promised some time ago to bid at least the reserve price for the C block of 700Mhz spectrum if the FCC accepted its demand for an open access rule for devices using the band, which the FCC did over Verizon's objections. If the reserve price is not met the rule will be dropped and the block re-auctioned. It appears now that bidding has stalled just short of the reserve price. It's assumed that Google has no interest in becoming a cell phone company and with a recession looming the 700MHz spectrum now seems worth a whole lot less. If Google's strategy was to force the bidding above the reserve but still lose the auction, Verizon could be calling their bluff, threatening them to live up to their word and buy what to Google could be the equivalent of a $4.6 billion 'doohickey.'" Update: 01/31 16:01 GMT by Z : And just like that, the plot thickens: the C block has hit the reserve price during bidding.
First, go here https://auctionsignon.fcc.gov/signon/index.htm Then put in Auction number 73 under public access... then click go. According to this, they are at a total of $11.5 billion now for the total... next round starts in ten minutes.
Victory is gained, not in knowing your opponents next move, but in preempting them.
Telecommuting just isn't all it's cracked up to be.
Basically, it's a tool to stimulate bidding. In a typical auction, the seller is obligated (by contract or at least good faith) to sell the item to the highest bidder. A reserve allows the seller to hedge her/his bets by defining a window between the minimum bid and the reserve in which a they're not required to sell, but do have the option. Often the reserve is not disclosed since bidders might be turned away by sticker shock.