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Thursday, 18 February 2016

FCC’s 600 MHz Incentive Auction to Start End of March, but Surprisingly Google Won’t Bid


Internet giant and Android creator Google clearly stated that it will not bid for 600 MHz spectrum licenses in the FCC's upcoming incentive auction of TV broadcasters' spectrum. Google will join Charter communications, Sprint and others sitting out the event. 

"Like all those interested in improved connectivity and equitable access, we'll be following the upcoming spectrum auction closely. That said, we have not filed to participate," a Google representative said. 

Also, Google did not participate in the FCC's landmark AWS-3 auction that ended a year ago. However, Google was a part of the FCC's 700 MHz spectrum auction in 2008 - but Google did not purchase any spectrum.

Regardless of its plans to sit out the auction, Google continues to play a major role in the U.S. mobile industry. It is the company behind the Android operating system, the world's most widely deployed smartphone OS. Moreover, it launched an MVNO service called Project Fi last year that allows users to access public Wi-Fi networks alongside the cellular services of both T-Mobile US and Sprint.

Besides the nation’s two major wireless carriers, other companies that indicate participation in the auction include- T-Mobile, Dish Network, Comcast and more. 

Sprint, another big name striving to turn around its business and implement a small cell network deployment, has also confirmed last year that it will not bid in the auction. Earlier this month, Charter CEO Tom Rutledge said “the company's pending acquisition of Time Warner Cable and Bright House Networks, and uncertainty about the eventual outcome of the deal would likely preclude its involvement in the auction.”

According to J.P. Morgan- “The FCC's upcoming incentive auction of TV broadcasters' 600 MHz licenses is likely to fetch only $25 billion to $35 billion in total winning bids, or roughly $1 to $2 per MHz/POP.” This is far below the $2.68 MHz/POP generated by the landmark AWS-3 auction that ended a year ago with almost $45 billion in total bids. It's also less than half of some analysts' estimates for the upcoming 600 MHz auction.

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