Google could spend billions on acquiring wireless airwaves in a U.S. government auction

Google could spend billions on acquiring wireless airwaves in a U.S. government auction

Search engine giant Google has said that they are considering spending a lot of money to buy up wireless airwaves in a U.S. government auction.

However, the company added that they are only ready to commit the investment of up to $4.6 billion if the Federal Communications Commission adopts rules requiring winning bidders to lease their unused airwaves at wholesale rates.

This was mentioned in a letter from Google Chief Executive Officer Eric Schmidt to the FCC Chairman Kevin Martin.

Martin has himself said that he would want the winner of the spectrum to open its network to any legal mobile device or application.

Schmidt added in his letter: “When Americans can use the software and handsets of their choice, over open and competitive networks, they win.”

Stifel Nicolaus & Co. analyst George Askew added in a note that Google might prefer to rely on advertising to generate revenues from this acquired airwaves rather than charging the customers by the minute.