FCC auction for wireless spectrum - More speculations

You might have probably heard about the hugely popular FCC Auction for wireless spectrum, which is undoubtedly one of the most talked about issues for quite some time now. If you haven’t got a clue as to what it is, I’d suggest you to read this piece and then continue with this post.

The news about FCC auction takes a new twist and turn every now and then and it’s nothing short of a Sidney Sheldon novel when it comes to surprises and speculations. First, everyone unanimously suggested that Google will go on to win the auction, no matter how big the prize is. A little while later, when Verizon and AT&T showed great interest in the auction, Verizon was considered the favorite. Considering the rift between Verizon and Google earlier, everyone thought Verizon would be keen to win the auction.

A little while later, there was another conspiracy theory going on – that Google might bid to lose in the auction. The reason stated was that the winner needs to open up his network to his competitors anyway, so Google might lose the auction and still get a piece of the spectrum. Now, it’s another theory. This time, it’s even more surprising.

The costs involved in building a wireless network and operating it will be enormous. In fact, it is said that it would take around $15 billion and three years to build a new network. So, rumor has it that Google might actually take part in the auction to hike the price and would lose voluntarily at the last moment, only to see the winner buy the slice of the spectrum at an enormous price. After some time, when the winning company has piled on a lot of debt, Google might actually hold the upper hand and bargain for whatever it wants.

All I can say is – wow. These speculations would make even the best of novelists ashamed of themselves. Sometimes, truth, as they say, is stranger than fiction. So, let’s keep our eyes wide open and get prepared for the auction.

Categories: Google.

0 comments.