Google accused of ‘gaming’ last month’s spectrum auction
- April 16th, 2008
- 7 Comments
So a Michigan congressman is accusing Google of “gaming” last month’s spectrum auction. The congressman, Michigan’s Fred Upton, who is a Republican, says Google bid just enough to trigger those pesky open access rules. He also called the way the auction was set up a big exercise in social engineering. Isn’t “social engineering” just a fancy way to say “lying”?
Two other congressman, John Shimkus (R-Ill.) and Cliff Stearns (R-Fl.), made similar complaints, saying the FCC was “duped” by Google’s duplicity.
One quick trip to OpenSecrets reveals that AT&T (through PACs, employees, etc.) have each contributed heavily ($5,000 each) to all three congressmen’s re-election campaigns. To me, it looks like they’re defending AT&T, who now have to play by open access rules because of Google’s bid. Whether or not that’s true I don’t know, but that’s the perception I get. And perception matter to these guys.
Josh (Who am I?)
5 months ago
I thought it was the B block which Verizon won that had to go with the open rules. AT&T went around that by buying Aloha Partners spectrum and licenses in the C block.
Daren (Who am I?)
5 months ago
i have to say the congressmen are right on the mark.
Who seriously didnt see this? Why the hell would google want that spectrum. They just wanted it open so that they programs could run on it.
Shikatsu
5 months ago
Well, they did exactly what they had pledged to do in order to obtain the open access rules. I don’t see why this is being painted as a bad thing; by guaranteeing the government a certain sum, they enabled them to attach rules that were more beneficial to the consumer.
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hario (Who am I?)
5 months ago
i don’t believe at&t has to comply w/ the open standards rule since those apply to the B block that verizon purchased and subsequently made open through their own initiatives. at&T purchased the C block that does not have the same restrictions.
boilr (Who am I?)
5 months ago
(correction to Josh’s comment above) verizon won the C block - this is the spectrum that had the open access “requirements” placed on them. I wrote a legal memorandum on the topic last semester. AT&T bought existing C block licensing from Aloha independent of the 700 MHz auction.
Whatever these politicians think, there is hardly any grounds for any action (legal or otherwise) as Google followed the FCC’s approved rules and bid appropriately on the spectrum license.
AT&T has spent decades influencing the FCC and congress…its about time someone else had a turn. If not for moves like Google made or like the famous Carterfone case which opened up AT&T’s network to third-party equipment, we would never have seen the incredible development in telecommunications over the last forty years.
In many ways, it’s not any different than bidding on something on eBay only to have a more serious collector bid higher than you, thereby winning the auction even after you were the one to meet the reserve.
open access is here to stay (or be litigated) - all consumers should be interested in this…
we (Who am I?)
5 months ago
Oh SNAP
Steve Lynch (Who am I?)
5 months ago
Have these guys ever played poker? Have they ever heard of something called “strategy?”
Wtf. The USGov uses the principles of game theory to structure the auction for a maximum payout. If they don’t think that every single company involved in that auction is trying to maximize their own benefits, then they’re idiots.