Google to bid for U.S. wireless spectrum

MATT HARTLEY

Globe and Mail Update

Internet giant Google Inc. has announced plans to apply to participate in the upcoming U.S. auction of wireless spectrum in the 700 megahertz (MHz) band.

Although rumours persisted that Google would partner with an established wireless carrier for the auction, the search engine titan has decided to go it alone.

Today's release makes no mention of Canada's upcoming spectrum auction, and the company has announced no plans to participate, a Google spokeswoman said.

The auction will free up spectrum airwaves for more efficient wireless Internet service for consumers, the company said in a statement released Friday. Google successfully lobbied the Federal Communications Commission to leave some airwaves in the auction open to phones not designated by the wireless carrier that ends up owning the spectrum, Google chief executive and chairman Eric Schmidt said.

“We believe it's important to put our money where our principles are,” he said. “Consumers deserve more competition and innovation than they have in today's wireless world. No matter which bidder ultimately prevails, the real winners of this auction are American consumers who likely will see more choices than ever before in how they access the Internet.”

Google, based in Mountain View, California wants cellphone companies to allow more users on their networks so that consumers spend more time surfing the web.

The company said it plans to file the necessary paperwork with the FCC on Monday. The auction is set to begin on Jan. 24, 2008 with a minimum acceptable bid of $4.6-billion.

It was the second major announcement regarding Google's migration into the wireless industry in the past month.

Earlier this month, Google unveiled plans for a new alliance with 33 technology companies to develop an open-source operating system for cellphones in an effort to become a universal portal through which users access the Web on mobile devices.

The software, dubbed Android, will include an operating system, user interface as well as a package of applications expected to include Google Maps, Gmail and other Google services. The first cellphones featuring the Android technology aren't expected to be available until the second half of 2008. It is expected to compete against operating systems developed by Microsoft Corp., Palm Inc. and Research In Motion Ltd. and will generate revenues by distributing ads the same way Google does with its search engine.

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