Google Inside

Google is starting to talk about their participation in the upcoming wireless auction spectrum being held by the US government.

Google has been in talks about only committing to participation if certain rules and requirements are met.

Google’s proposals are controversial for existing mobile operators, which could decide not to participate in the auction if the rules don’t suit them, resulting in potentially less income to the government. On Thursday, Verizon Wireless said that complying with Google’s ideas would amount to corporate welfare and bad public policy.

The $4.6 billion amount appears to be the figure that Google believes the FCC will require as a minimum price for the spectrum. In its letter to the FCC, Google wrote that it understood that a draft order from the commission had specified that figure. The FCC typically sets a minimum price to sell spectrum; if the minimum isn’t met, the agency can cancel the auction.

“We’re putting consumers’ interests first and putting our money where our principles are — to the tune of $4.6 billion,” Chris Sacca, head of special initiatives at Google, wrote on the company’s public policy blog.

Google tries to have the best interest at heart, but in an area such as this, I almost feel like Verizon would know better. Verizon Wireless has been in the industry much longer than Google has been or ever will be. All the details are not clear yet, but I’m starting to lean with Verizon on this one.

Google will have to make some strong arguments and cases if they want to proceed with their rules and requirements for their $4.6 billion commitment.