Google commits $4.6 billion to spectrum auction- with a catch

In a letter to the Chairman of the FCC, Google’s CEO Eric Schmidt says Google is committing $4.6 billion to the potential 700MHZ spectrum auction that will send shock waves around the world. With this move, Google hopes to keep 4 open access points in play:

• Open Applications – Clearly Google sees benefit in its application (and thus advertisement) delivery
• Open Devices – Google sees a world where any device, even the iPhone, can be used on any network.
• Open Services – Resellers should be able to get service from anyone.
• Open Networks – Third parties should be able to interconnect at any technically feasible point on the network.

There is a catch. Google sees the above four items critical to its future. Google will only commit the money if the 4 points are adopted by the FCC. The $4.6 billion is the reserve price for the block of spectrum “to address unsupported claims about any impact from adopting open platforms conditions.” I am not so sure I’d toss around that kind of pocket change on “unsupported claims” but when you are dealing with the FCC, anything is fair game.

Back in June, I wrote on the rumors spreading about Google’s involvement and potential bidding. Seems both sides were right, Google is angling to keep its fruits alive – stave off carriers blocking their mobile advertising – and it will have a bid in play, assuming the FCC goes forward with this plan and include the 4 points above.

Read [GooglePR]