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Wireless Auction Google Playing Chess Ten Moves Ahead

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by Kevin Maney
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Mar 21 2008 12:00am EDT

Wireless Auction: Google Playing Chess Ten Moves Ahead

This has to be one business schools will study -- assuming Google's maneuvers in the FCC's 700 Mhz auction were all thought-out and well-considered.

Google wanted open cellular networks so it could offer services to anyone, much as it does on the Internet. Google made noises as if it was going to bid on wireless spectrum and go into competition with the established wireless carriers and told the FCC that if it won, Google would keep the networks open. That put pressure on Verizon and AT&T to say they'd open up their EXISTING cell networks, and Google influenced the FCC to make the new 700 Mhz spectrum stay open.

So Verizon won the biggest block of licenses, and AT&T won a bunch -- but Google didn't pay a dime and wound up with basically what it wanted. Not many companies can pull off something like that.

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