Google Phone

A freshly published Google patent filing suggests that, while the company may be on good terms with cellular carriers now, in the future the telcos might be a little more resentful.  Titled “Flexible Communication Systems and Methods”, the document describes a system whereby a mobile device - such as an Android cellphone - could monitor and judge available wireless networks and route voice and data traffic over whichever was the cheapest. Google’s filing describes cellular, WiFi and WiMAX networks as all being potential routes, with the technicalities invisible to the user; their example is a mobile handset that works on home WiFi then seamlessly transitions to a WiFi hotspot or cellular network when outside.

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Three US government representatives have alleged that Google wilfully manipulated the recent 700MHz spectrum auction, and as a result potentially dissuaded bids in excess of $10bn extra. Republicans Cliff Stearns and John Shimkus together with Democrat Eliot Engel used a hearing today to express their concerns that, in pledging to meet the $4.6bn reserve set for Block C and thus secure open-access, new potential bidders were deterred.

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If there’s one thing the FCC auction has shown us, it’s that Google is pretty sneaky when it comes to getting their own way. They set their sights on open-access - which would mean devices running Android, even if not officially picked up by any of the carriers, would be able to access the new 700MHz networks set to roll out in 2009 - and persuaded the FCC to add the provisos in on the understanding that Google would take responsibility to push Block C over its reserve.

Of course, we now know that Google was a minor player in the auctions and came away with nothing; Verizon stumped up the cash for Block C, Google gets its open-access, and the FCC goes scampering to the bank. Now the search giant is back, apparently set to deliver a proposal to the FCC for “white space” access: that’s the unsold spectrum in-between the digital TV channels. As you might expect, Google see both portable and fixed broadband devices, running Android, and compatible with both white space and Verizon’s Block C.

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The FCC has confirmed the winning bidders [pdf link] in their recently closed 700MHz spectrum auction, with Verizon Wireless taking the majority of the coveted Block C while AT&T picked up 227 licences from Block B. The auction, which raised $19.592bn in total, concerns parts of the wireless spectrum that will be freed up once analogue TV is turned off and broadcasters switch to digital, starting in 2009. Verizon spent $4.75bn on Block C and a total of $9.63bn in the auction overall; AT&T is believed to have spent around $6.64bn in all. Google, who were strong proponents for the “open access” provisos the FCC later built into the Block C contract, apparently made a “serious bid” according to the FCC, but in the end won none of the licences.

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After three rounds of stability just under the $4.6bn reserve threshold yesterday, round 17 of bidding in the 700MHz spectrum auction saw a figure of $4,713,823,000 bid and, as a result, the open-access provisos which Google pushed for will now definitely be included in the contract of whoever wins the so-called “beachfront” band.

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The long-awaited (and once delayed) FCC auction for the so-called “beach-front” 700MHz wireless band begins today, with the shortlist (that, at 214 members, isn’t all that short) of potential bidders each hoping to take away one of the five blocks of prime spectrum.  Block C is the most hotly contested, due to its breadth (22MHz) and clustered regions, with big-name players including Google, Verizon Wireless and AT&T all tipped to be interested.

Three rounds of bidding will take place each business day, with information about the highest bid - though not the bidder who has placed it - distributed among participants; there is no set end-date, and the auction ends when no further bids are placed.  Each block has a reserve price: block A at $1.81bn; block B at $1.37bn; block C at $4.64bn; block D at $1.33bn; and block E at $904m, and if those figures fail to be met then a second auction will be scheduled with new reserve prices.

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All eyes this week may have been on the Macworld 08 Keynote, but that didn’t stop the FCC from releasing the final line-up [pdf] of participants in the fast-approaching 700MHz spectrum auction.  As expected, Google is one of the companies who has made pre-bid qualifying payment and cleared by the government agency to take part; they’ll be competing against Verizon Wireless and AT&T, who obviously managed to get their paperwork completed in time for the auction deadline.

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In a release from the FCC earlier this week, Google is confirmed as one of the 700MHz spectrum would-be bidders, together with mainstream telcos Verizon Wireless and AT&T.  The list of interested parties - separated into those who have fully completed their applications [pdf link] and those who must still do so prior to the January 4th deadline [pdf link] - does not indicate which spectrum chunks each company is interested in, but Google (listed under ‘Google Airways Inc’) is in familiar company, with fellow Open Handset Alliance member Qualcomm also present on the roll-call. 

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With the deadline for 700MHz auction “intent to bid” applications being close of business yesterday, a tentative shortlist of potential spenders is being drawn up.  According to the FCC’s auction rules companies are under no obligation to disclose their intent publicly (indeed some potential players have cited the Commission’s own confidentiality policy in declining to answer) but that hasn’t stopped analysts from having their say.  Currently, Google, AT&T, Cox Communications and Frontline Wireless are all believed to have submitted applications, the latter confirming with CNET that they were part of a consortium that includes ex-Netscape CEO Jim Barksdale and Kleiner Perkins venture-capitalist John Doerr, while the former did so last week.  Neither AT&T nor Cox would comment.

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Will they/won’t they speculation has flourished since Google first made overtures towards the FCC with regards the 700MHz spectrum auction in January, and now the Wall Street Journal is claiming [registration required] that the search company’s participation is set to crank up a gear with a statement announcing their intent to bid expected on Friday.  The auction - for a slice of the wireless spectrum commonly described as “beach front” because of its rich support for high-speed data networks - demands a statement of intent to be declared by the 3rd December; previously analysts have been unsure whether Google intends to invest or merely push through the open-access provisos that would make competition in the cellular industry more straightforward.

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