The deadline to apply to participate in the FCC’s upcoming auction of wireless 700 MHz spectrum passed on Monday. And we still don’t know exactly who the bidders will be. But we have a pretty good idea.
Google is in. So is AT&T, Frontline Wireless, and Craig McCaw’s Clearwire. Comcast and Time Warner are out. But Cox Communications is in.
Verizon Wireless isn’t saying either way, but everyone expects it to bid. Sprint Nextel is sitting this one out, as is Microsoft. And T-Mobile isn’t expected to play a big role.
At least initially, there seems to be two major camps. Google and Frontline on one side, looking for an opening in the entrenched wireless industry. And AT&T and Verizon on the other, trying to keep the technology pirates from climbing aboard their ships. And Craig McCaw as always, is the wild card.
As for other possible bidders, you can never count out Qualcomm, or the handset manufacturers like Nokia or Sony Ericsoon, who might like to bypass the carriers for once. Smaller wireless companies like Alltel or Leap Wireless could bid on a regional basis.
I would not be surprised if at some point Google and Frontline combine forces. Any auction strategists or game theorists out there have any advice for how they can improve their chances of winning? Please enlighten us in comments.
(Photo by Steve Jurvetson)
ooh, pretty picture. i didn’t read the article yet, but i sure did like the picture.
sincerely,
angela hayden
ART GODDESS
It’s always funny when people try to sell things that belong to no one.
Can someone clue me into the kinds of strategies that can go into this? It seems like all a bidder knows after each round is the dollar value each other bidder offers. Since they are forbidden from talking to each other, and there isn’t much room for offering creative deals to the government, how can this be much of a game? Won’t they just keep increasing their price until it meets some limit the corporations have already decided? Can the companies seek additional outside support once they’ve started bidding? Or is colluding with non-bidders also prohibited?
Anybody still doubt about what is gonna happen in a closer future?
Google will represent Internet Big Brother. They already have the information power, but they will have the network power.
Does anybody know what type of auction it is? (English, Dutch, Vickrey etc.)
Obviously, the picture is a photo of 700 MHz spinning around
After having purchased millions of kilometers of fiber wire a 700MHz license is the next logical step for Google and I guess we all know hat they have enough money. Regardless of what their opponents might bid.
And after investing way too much money in the German UMTS licenses I don’t expect T Mobile to give the 700 a try.
If I were to bet – I’d bet Google – As Malte Landwer (7) said – it’s the next logical step – they’re working their way up the network layers.
As I read on another blog – “Google don’t want to just organise information on the Internet – They want to BE the internet”
- Tim
Google is in the auction because they asked for four concessions from the FCC and received two of them centered around open access. First and foremost, they needed to participate, regardless of whether their business strategy calls for them to win. Their huge bankroll will help drive the winning bid up if they don’t win and of course will result in a higher price paid if they do. Either way, if they didn’t participate their political capital would have been seriously devalued if they’d sat on the sidelines.
My money is on the “Big ol expensive phone company” ATT!
They will want to keep this away from any potential competitors
just to maintain their stranglehold on your phone! I would!
http://fakestev...er.blogspot.com
My money’s on Google.
Coupled with Android, they will re-write the book on mobile access, like they’ve done with everthing else they put their tremendous talent into.
Bill Burke
http://wireless...ch.blogspot.com
the name for these things in econospeak is common value auctions. The general gotcha is that the entity which wins the auction is the one which has the most overinflated impression of the asset’s value.
kinda like buying a car at auction – it may be a lemon, but the one who wins the auction is most likely not thinking that it’s a lemon, hence the high bid.
I say Google, for sure. They’ve banked on winning the spectrum to launch their “much anticipated” Google Phone on their own network. Why share when you can keep all the profits to yourself?!
So how much cash will the FCC raise in this auction? AT&T and GOOGLE are likely to drive bidding… but how high? The Predictify crowd is predicting a final price over $21 billion. Could the price go so high? http://www.pred...iew.aspx?ID=232
Google is not in the business of ‘borrowing’ and paying dues. they have enough cash to outbid even the most outrageous amount. If ATT won’t have it, you bet they’ll give Google a run for their money.
similar auction is happening in Canada. I wish there were so much interest over here as well. oligopoly in our market is getting people fed up
Google don t buy 700 MHz spectrum, this is rummor
It is hard to predict about their strategy unless google give some clue about this.
As Tony Carson wrote, Google are only in this because they are obliged to be. They are not in the business of running a mobile network and don’t want to win.
I would expect them to bid the minimum necessary amount of $4.6B and leave it at that. They do not want to force any other operator to over-pay as this might slow down the network build out. Google wants the Internet to stay open that is all.
The best strategy depends on the type of auction. If it’s a second-price sealed auction, for example, the only real strategy is to be honest and submit the maximum price you’re actually willing to pay (if you’re trying to win).
Google 10 billion, free wireless broadband for all.. Then does the same in Europe.
Well on eBay I always wait until the last minute and then bid up a storm…
Google and Frontline, eh? Will Will Lyman be doing the auctioneering? He could make even Alvin and the Chipmunks threatening.