Rhys Blakely and agencies
Win luxury hampers plus Waitrose vouchers & guidebooks
Google’s plans to bid for a portion of America’s airwaves were dealt a blow last night when the Federal Communications Commission refused to approve two of the internet company’s conditions.
Google had said that it would match the $4.6 billion (£2.3 billion) reserve price set for a 700MHz licence, which could be used to provide wireless broadband internet access across the US from 2009, if the eventual winner was forced to meet four “open access” conditions.
The Federal Communications Commission, the body setting the conditions for the auction, approved two of those terms, which will allow customers to use whatever device and software they want on about one third of the spectrum to be auctioned.
However, two more controversial provisions put forward by Google, which would require the eventual licensee to sell access to its network on a wholesale basis to rivals and allow other parties physical access to infrastructure at realistic points, were not included.
The auction must be completed by the end of January.
The agreed rules will also allow for the creation of a shared public safety network. Commissioners hope that this will solve many of the communication problems that firefighters and others have experienced during disasters such as the September 11, 2001, terrorist attacks.
The text of the rules was not released at Tuesday’s meeting.
The details contained in the eventual document are likely to determine which investors will commit billions of dollars to develop new wireless networks.
The spectrum to be auctioned can travel long distances and penetrate walls easily – the same characteristics that made it attractive to broadcasters, who are vacating it to make way for all-digital television.
The Congressional Budget Office estimates that the auction’s proceeds will amount to between $10 billion and $15 billion.
A total of 62MHz will be auctioned under the plan, of which 22MHz will be subjected to the “open access” rules.
Another 10MHz will be dedicated to the national public safety network, which will be shared between a commercial operator and public safety agencies.
Read the training tips and advice that helped our London Triathletes
Times Online's new TV show helps you make the right decisions for your pet
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles

Overseas contacts and local business information

Find a course, arrange a game and save money
2007
£47,995
2008
£42,945
06/2006
£40,850
Great car insurance deals online
£33,000
Macmillan Cancer Support
Central/South West
£50k
NHS
Nationwide
£
£30k OTE
Meltwater News
Nationwide
circa £70k
Central Office of Information
London
5% below developer pre-launch price!
Luxury Appts, beautiful gardens w/ Thames views
Great Homes Available on a shared Ownership Basis
Great Investment, River Views
Visit the ‘entertainment capital of the world’
at great sale prices!
Christmas Cruises
From only £995pp
APTs East Coast now from only
£2425pp.
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Goog is starting to lose more often and making bad decisions.
Matt, yes, ohio
Google is lucky, that spectrum equates to a total waste of good money thrown towards obsolete technology. Quantum Communications in development and near some particularly interesting laboratory development levels will likely win out in the end and requires zero payment to the U. S. Federal Communications Commission bureaucrats.
In the United Kingdom, this technology permits a wholesale throughout of all frequency use by an entire class of equipment. Cell phones, laptops and communications networks would essentially receive a zero mile cost after paying for fix assets realized in new replacement gear. This could happen sooner if even five percent of the amount Google was going to pay the FCC (or the U. S. Treasury bill yield) would get channeled to Quantum Communications research and development to accelerate its conversion from lab artifact into communications dynamo for the new millennium.
Quantum Communications is coming sooner than any pundit in the telecommunications dares.
D. R. Arthur, Des Moines, IA
obviously this author is in the hands of telecom who is very fearful of google. hence the title.
wonderful world, isn't it?
simon labeouf, borgnostram, uSA
I think that one of the things that will be affected greatly is internet radio. This control over the airwaves could potentially limit the type of online radio that is distributed to millions (yes millions). If google contols the airwaves they could potentially take over internet giant pandora and run a monopoly on internet radio (as well as other things). Also with the newly added royalties curently at the legistlature, I see this as being a disaster for consumers. I will agree with Fred on this one.
I give big business a decade and they will have contol over the airwaves.
Walter, Sacramento,
We have to thank Google that at least two of those terms were agreed to thanks to their ultimatum. They weren't seriously expecting to buy a slice for $4.6B, they wanted to force the FCCs hand, and were willing to put money where their mouth is if the "worst case" This wasn't about Google wanting to become a provider, it was about them affecting mobile communication for the better. Why you've described it as a "blow", I don't know.
Ash, London,
Misleading headline. Isn't the cup also half full?
Beaver Bronson, Carlos, Calif
The spectrum is as essential as the natural resources and basically belongs to the nation. It should be sold out by the government with much greater public interests than it does. Google's "open access" conditions are an effort to fix the mainly corrupt FCC system that might again put a consumer at a mercy of the businesses. Just look around - see what's going on with the US wireless industry - total consumer slavery!
Fred, Princeton, NJ
gee i wonder if lobbyists from certain other telecom industries had anything to do with this
adam, milford, us ct
Well Google could just buy the spectrum and do what it pleases with it and impose those rules they desire.
Tucker, corona, ca
The FCC should publish to all American citizens & taxpayers & telecommunications analysts a detailed explanation of their experts analysis of Google's proposal / conditions. Either that or they should should give an open press conference and promise to answer all questions in writing in a reasonable period of time.
With the President being a lame-duck and all his appointees sort of needing a new job in the not- too-distant future and with there being so many dollars at stake, transparency and full disclosure are called for. It would also seem wisdom to specify that these rights sunset after a certain number of years or under certain clear and reasonable conditions.
Bob Cooper, Oceanside, CA