Google cleared to bid for wireless spectrum

The US Federal Communications Commission (FCC) has cleared Google to bid in its upcoming auction of wireless spectrum, raising the prospect that the search engine giant could soon become a major player in the mobile phone and data business.

Google was among a list of potential bidders released by the FCC that have made a required up-front payment and have been cleared to take part in the high-stakes 700MHz wireless auction.

The auction is scheduled to begin on 24 January expected to raise at least $10 billion for the US government, mirroring the success of 3G auctions in the UK that raised over £22 billion for the British government.

Other bidders include US wireless providers AT&T and Verizon Wireless, as well as ventures involving EchoStar, Cablevision and Microsoft co-founder Paul Allen.

The 700MHz spectrum is valuable because signals can go long distances and penetrate thick walls.

The spectrum is to be auctioned off in several different blocks, ranging from smaller regional blocks to large, nationwide ones.

The auction is seen as a last opportunity for a new player to enter the wireless market. Google and other Silicon Valley leaders see the wireless spectrum as a way to create more open competition for mobile services and devices than those available on existing networks.

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