Google To Bid For Airwaves

Google (NASDAQ:GOOG) is willing to bid at least $4.6 billion for wireless airwaves spectrum being auctioned off by the federal government. Google wants the FCC to mandate that any winners lease a certain portion of the airwaves to other companies seeking to offer high-speed internet and other services.

It is part of Google's larger initiative to offer wireless access to open up the marketplace for its onlines services. It will also give consumers a third option besides cable or telephone companies to get high-speed internet or broadband access, thus lowering the prices for internet access. Google's position puts it at odds with major telecom carriers such as Verizon Wireless(NYSE:VZ) and AT&T (NYSE:T), both are expected to be bidders.

Open network access would allow consumers to buy the wireless device and software of their choice and use it on the new network. In a letter to the FCC Google's CEO Eric Schmidt said, 'In short, when Americans can use the software and handsets of their choice, over open and competitive networks, they win.' Jim Cicconi, AT&T's vice president for external and legislative affairs, said Google would now have to 'put up or shut up.'