ON GOOGLE AND THE SPECTRUM AUCTION

NO BET

It looks like Google investors may rest a touch easier.  Forbes reports that Google may be out of the bidding in the wireless spectrum auctions being run by the FCC:

"After dominating the U.S. wireless spectrum auction for months, from influencing the terms of the auction to bidding, it looks like Google is off the hook.

Nine days into the closely watched Federal Communications Commission auction, it appears that enough competitors are keen on the spectrum that Google won't be stuck shelling out billions of dollars for the right to own and operate a new wireless network.

Instead, analysts believe that Verizon-thought to be the only bidder besides Google that is both rich and motivated enough--is poised to win the coveted C block of spectrum that Google was eyeing."

If true, this would be good news for Google investors in the short-term, who've been concerned that Google may go off investing in infrastructure businesses that aren't part of their core expertise.  Especially since investors have had a lot to worry about lately, what with Google's first disappointing earnings release last week in a very long time.

Not necessarily as good for customers though, in the long-term.

Comments

[Alex Tolley]

Interesting to see the WSJ OpEd papge excoriating the FCC over the "failure" of the auction because they see the open access restrictions on the C-block have reduced its value.

Now it remains to be seen just how "open access" this spectrum will be. What if Verizon buys it and just keeps it dark, or provides just enough openess to meet the terms, but effectively maintains a closed system?