Offering $4.6BN is like offering $0.99 - it's well below the low end of what this auction will produce. Spectrum tends to be priced in Mhz-POPs (equal to one Mhz covering one person). The US has ~300MM people, so the 22MHz Google is talking about is equal to about 300*22=6.6BN Mhz-POPs. Google is offering, then, at least $0.70 per Mhz-POP. Given that, in the last spectrum auction (AWS, in 2006), less attractive spectrum sold for more than $1/Mhz-POP, Google's offer is a non-starter. If they offered to guarantee at least $2/Mhz-POP ($13.2BN), that would be a real statement.

The $4.6 billion meets Martin's reserve price for the spectrum; I should have clarified -- and will now -- that Google says it'll put in at least that amount.

Geez, with $4.6 billion in my pocket, I could come up with brilliant strategies for a lot of things!

Still, good on Google for fighting to open up the wireless spectrum.

-Jeremy

This is really incredible.

Almost without exception the hyper-giant companies ALWAYS stick together when it comes to setting up systems that rip off customers and rape them out of every last penny.

The fact that one of their own (Google!) has betrayed the Brotherhood and is actually sticking up for the little guy is a moment that will go down in history books.

Is such a feat even possible? Can someone stand against the gods? Can the all-powerful ones be defeated?

Surely mere “customers” could never stand against them.

But a fellow giant like Google who is actually willing to spend BILLIONS to defeat them?

It just may be possible.

There is a hope, however small, that maybe (just maybe) the boot of the telecoms might be taken off our necks.

It's worth noting that this is an excellent investment for Google. If it works, it help open up the kind of wireless space that Google would be great at providing services for. Their potential ROI for this is huge.

It's a great example of Benevolent Self Interest.

has it occurred to you, cestmoi123, that the prospect of $4.6MMM of google's cash being committed to the auction is meaningful because it amounts to a larger overall pool of dollars chasing the same slice of spectrum? this is very basic economics. i haven't read anything that indicated that google was expecting to purchase all of the available spectrum for their aforementioned billions. if that was the intent, they wouldn't care what other bidders planned to do. all in all, google's commitment of capital stands to substantially increase the overall revenue generated by the auction at the same time it protects the interests of consumers in what is essentially a communally "owned" asset.

Brilliant. And- it's nowhere near an All-In move, this cash opener is a fraction of Google's betting position.

... anyone calling for that 700Mhz to simply be declared open, and not sold off at all?! It's part of the public commons. Will they be splitting up and selling of Yellowstone Park next?

WiFi, Bluetooth, etc. are all restricted to a 1 or 2 Mhz band (if I remember correctly) that is currently open to any use. Imagine the wireless networks available if those protocols (or similar ones) could make use of the full 700Mhz range!

Any business could compete on it. It would be a much larger, and more economically beneficial open market. And it would leave much more room for new innovation.

Why is everyone assuming that it's a foregone conclusion that this spectrum must be held privately?

Go gett'em boys compitison that will drive down prices!

Google has committed to spend $4.6BN only if the FCC puts requirements on the auction that would sharply lower the value of the licenses. This is the equivalent of saying "I'll commit to buy that Porsche for $30k, so long as you agree to paint it hot pink and cover it with Nazi symbols before you put it up for sale."