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Spectrum Auction Could Be A Game of Chicken

Posted by Zonk on from the who-will-blink-first dept.

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.

6 of 193 comments (clear)

  1. UK 3G by SimonGhent · · Score: 5, Interesting

    I'm not surprised that US companies aren't falling over themselves to bid.

    Take a look at what happened in the UK when the 3G air was up for sale - they threw money at it and ended up with next to no customers.

    With the way things are economically at the moment, people are not looking to up their monthly spend on their mobile phone bill. Companies will have a hard time recouping a huge outlay.

    --
    simon
  2. Nah . . . by MBGMorden · · Score: 5, Funny

    I bet they're just waiting. 30 seconds before it ends all their auction sniper programs will bid it up another 30%.

    --
    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  3. Check out the FCC auction yourself! by acherrington · · Score: 5, Informative

    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.
  4. Re:FIOS by TheMeuge · · Score: 5, Interesting

    FIOS isn't "good" because it's a good service. FIOS is only "good" because this is Verizon's final "fuck you" to the taxpayers that helped fund its infrastructure, and an open attempt to become a totally unregulated monopoly. You see, they HAD TO lease the copper lines, because FCC mandated it. They don't have to share the fiber optics. As a result, they've been busy building the fiber network that would cement them as a monopoly, while completely ignoring troubles with their copper... leveraging the reduction in the quality of service over the copper lines, to attract people to the fiber.

  5. Re:too bad by Anonymous Coward · · Score: 5, Informative

    Housing is still affordable....just not where the jobs are.
    Fixed a typo for you.

    Telecommuting just isn't all it's cracked up to be.
  6. Once the auction hits reserve by hyperz69 · · Score: 5, Funny

    All the other telcom companies companies come under a massive DOS attack from the middle east / central asia and google wins at reserve price. :)