Google pledges $4.6 billion for upcoming wireless spectrum auction

Mountain View (CA) – Google has pledged to bid a minimum of $4.6 billion for the upcoming wireless spectrum auction run by the Federal Communications Commission. In an open letter to FCC Chairman Kevin Martin, Google’s Eric Schmidt said that the company would bid, if the FCC mandates open connectivity for the winners.

Specifically Schmidt wants the winners of the 700 MHz band auction to allow mobile devices to be able to connect anywhere and use any application. In addition, he wants third party mobile phone providers to be able to buy access at wholesale rates. Currently mobile phone services are controlled by a small group of companies (namely AT&T, Sprint, Verizon, etc). Google also wants the winners to allow broadband providers to link up with the wireless spectrum at “technically feasible” points.

The FCC hasn’t set a date for the auction, but some think it could happen as early as January. The auction could raise almost $20 billion, but so far no concrete rules have been set for bidding. The FCC has released some draft proposals, but those don’t include all the points that Google wants.

Keep in mind that Schmidt pledged a minimum of $4.6 billion and Google has enough cash on hand to completely dominate the auction if Verizon or any of the other carriers decide to get into a bidding war. If Google wins the auction, it will essentially become a wireless carrier – perhaps that often rumored Google Phone will eventually become a reality.