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c block posts

Google elaborates on the C Block auction, still happy with the results

by Paul Miller posted Apr 4th 2008 @ 3:08AM

If it wasn't clear going into the auction, it's pretty much obvious now that the dust has settled: Google wasn't in the 700MHz Block C auction to win it -- though it was certainly ready to pony up the cash in the event of a win. It was conjectured that Google was driving the bidding early on, in an effort to get hit that magical 4.6 billion reserve price that would require the winner to allow open access of devices and applications to the resulting network, and now Google has confirmed that it was pretty much a Google show in the early days of the auction. Apparently ten of the bidding rounds involved Google raising its own bid, "but it was clear, then and now, that Verizon Wireless ultimately was motivated to bid higher," reads the Google Public Policy Blog. It's worth noting that Google claims it would've nabbed the C Block license "at a price somewhat higher than the reserve price," but building out a network and becoming a major player in next-gen wireless internet would certainly be a large departure for the company, and we're sure there's a bit of relief over in Mountain View, CA at the moment.

Analysts calling it in favor of... Verizon

by Paul Miller posted Feb 6th 2008 @ 9:53AM

Get your head out of election mode, people, we've got a 700MHz auction to worry about! Those in the know are saying that Verizon is sneaking away with the C block, and that Google isn't too miffed about it. Plenty of pundits were predicting that Google would stand by its word and bid up to the $4.6 billion required to ensure the block of spectrum is made "open," but they figured Google would bail on the auction at that point and hope someone else would come along to up the ante and foot the bill. From all indications, Verizon is that lucky bidder, but instead of bidding directly on the national C block, analysts believe it's been Verizon that's snapped up enough regional slices of spectrum to equal the bidding price of the C block. Under FCC rules, if regional bids outstrip the C block price, the block is divvied up and given to the respective bidders. While any proper Google fanboy would love to see the search giant get its hand on last-mile wireless spectrum and break the grasp of current service providers, it was also rather optimistic. Don't stop believing, bidding isn't over yet, but we're getting ready to hunker down for another couple decades of Verizon / AT&T rivalry.

Update on the 700MHz auction: "C" block at $4.3 billion and rising

by Joshua Topolsky posted Jan 30th 2008 @ 1:31PM

Here's some up to date 700MHz bidding news for you. Currently, bids on the hotly contested "C" block have risen to almost $4.3 billion, or just a few dollars away from the FCC's reserve price of $4.6 billion. That number puts us perilously close to triggering the "open-access rule" which pretty much everyone (Google especially) has been clamoring for (or fighting). The total bids on the spectrum are also hovering near the $10 billion mark, which has been the FCC's goal all along, ostensibly demonstrating that everything is going according to plan. There is one small snag, with the "D" block -- the public safety / first responder band -- not seeing the kind of action the agency had hoped for, nabbing only $472 million in bids, a far cry from the minimum requirement of $1.6 billion. Of course, bidding has six weeks to go, so no one seems to be sweating just yet, though "lawmakers" are swearing they'll take "quick action" if the numbers don't rise.

[Thanks, Aaron]

Read -- 700Mhz Auction Approaches $10 Billion
Read -- House Panel Bird-Dogging 700MHz Auction

The FCC's 700MHz auction: what you need to know

by Chris Ziegler posted Jan 24th 2008 @ 12:01AM

Alright, alright, everyone calm down -- yes, today marks the beginning of 2008's Super Bowl of wireless spectrum auctions, but unfortunately, there won't be much to see. No 24-hour television coverage of the intense action, no live webcams of the FCC's wacky, wild, no-holds-barred trading floors; heck, not even an official update from the Commish or any of the bidders. Why's that? Glad you asked. Let us quickly break down what the auction's all about and what it means to you:

The auction, known officially as Auction 73, is made possible by the move from analog to digital television, which frees swaths of bandwidth in the 700MHz range.
This represents one of the last frontiers of nationwide RF spectrum that is expected to be available and practical for consumer use any time soon, which has generated intense interest and even more intense scrutiny.
In an effort to stem collusion, the FCC is being extremely secretive about the applicants for bidding, saying only that there is a total of 214 bidders involved. They've also told bidders that they aren't allowed to publicly disclose anything about the auction or their bids before the auction's over, lest they forfeit the whole shebang.
We do know that AT&T, Verizon, Cox, and most famously, Google are all committed to bidding.
Auction 73 is broken into a total of five "blocks." Block C is by far the most coveted of the five because it contains the most bandwidth -- 22MHz in total, broken into two 11MHz pairs -- and also because it consists of fewer regions, making it easier to assemble a contiguous, nationwide network. Blocks A, B, and D should see some action, too, while Block E is the redheaded stepchild of the bunch with only one 6MHz piece of spectrum to its name.
The FCC has ordered that the winner of the Block C auction must commit to creating an open-access network, meaning any device capable of supporting the appropriate protocols must be allowed to connect and enjoy 700MHz bliss.
Bidding begins today, January 24, in two consecutive rounds. Starting tomorrow and each business day thereafter, there will be a total of three bidding rounds. After each round concludes, the FCC will disclose to bidders the current asking price for each block without revealing anything about the winning bidders. Bidding continues indefinitely until no additional bids are placed.
The reserve price for Block A is $1.81 billion; Block B, $1.37 billion; Block C, a whopping $4.64 billion; Block D, $1.33 billion, and Block E, $904 million. If at the end of bidding any reserves have not been met, a new auction, Auction 76, will automatically be spawned. The FCC's open-access requirement on Block C would be dropped if it makes it through to Auction 76, fueling rumors that Google intends to bid it up to the reserve price then drop out. The date and new reserve prices for the remaining blocks would be decided when (and if) it's determined that Auction 76 is necessary.
There is no "Buy it now!" button, we hear, and the FCC has a stellar feedback rating. Don't worry, bidders, the FCC isn't going to screw you on shipping and handling for the wireless spectrum you've already paid top dollar for.

So there you have it. As dry as that summary may be, it pales in comparison to the piles upon piles of literature the FCC has generated (as one might expect from a government bureaucracy of the highest order) and it's really about as boiled down as we can get it for the moment. We won't know who won, where the bidding stands, or what firms plan to do with their blocks until the conclusion of the auction -- a conclusion that could come tomorrow, next week, or next month. Rest assured, though, we'll have plenty more coverage as soon as this all shakes down.