With the record-setting 700 MHz officially closed and out of
the way, lawmakers have instead chosen to focus their attention on some of the
auction’s more minute details: “why didn’t the D-block sell?” ask some.
“Did
Google game the auction in order to ensure it had access to spectrum?” ask
others.
Lead by U.S. Representatives Cliff Stearns and John Shimkis,
lawmakers suggested that Google “out-maneuvered” the FCC by bidding for the
open-access “C” block in order to meet its reserve, fully expecting another company
to outbid it – and that’s exactly what happened.
Google officials, writing in an April
3 blog post on the 700 MHz auction, somewhat confirmed Congress’
suspicions: “Google's top priority heading into the auction was to make sure
that bidding on the so-called ‘C Block’ reached the $4.6 billion reserve price,”
it says, “[in order to] trigger the important ‘open applications’ and ‘open
handsets’ license conditions.”
Google says it helped increase U.S. treasury funds, noting
that it upped its bid in ten of the bidding rounds -- even when it was only
bidding against itself -- in an effort to meet the FCC’s $4.6 billion reserve
price.
Stearns accused Google of manipulating the FCC, and the FCC
of setting the reserve in a way that allowed Google a “free ride” on the C
block. An effort by Google to, perhaps, sustain the Open Handset Alliance and
provide a home for its open-source Android mobile phone OS.
“I suspect that if Google had been interested in more than
just maneuvering within the system, it could have prevailed in the C block and
become a new [wireless] entrant,” said Stearns, speaking to the House of
Representatives’ Subcomittee on Telecommunications and the Internet. “I suppose
we cannot blame them for trying to get free access to the spectrum; what is
more concerning is, that even though we knew what they were doing, we let them
maneuver this way anyway.”
The C block’s open access requirement stifled bidding, said
Stearns, who cited a number of estimates that said the government could have
earned up to $30 billion had it not set Google’s
requirements.
FCC Chairman Kevin Martin, who many consider as the one
responsible for getting the open-access requirements approved, disagreed with
the House subcommittee: “Our goal, in adopting the openness conditions, was not
to prohibit someone else from winning, but to actually [require] whoever won
that spectrum to have an open platform.”
Martin’s behavior – particularly with decisions regarding
the 700 MHz auction and the ongoing
Comcast debacle – earned him a spot in hot water, with staffers and
lawmakers alike accusing him of wielding
dictatorial powers.