Released: July 30, 2007

FCC to rule on wireless networks auction

Source: Kim Hart, Washington Post (Free Registration)

The Federal Communications Commission will set the rules tomorrow governing the auction of $15 billion of public airwaves, a decision with stakes so high that the major U.S. cellular carriers and Google have spent millions of dollars on a lobbying campaign in an attempt to influence the outcome. The decision could dramatically alter the nation’s cellphone industry.

Google, the giant Internet search company, wants to extend its popular tools, which include e-mail and video, to the rapidly expanding mobile phone market. To do so, it may spend billions to build a new, open network it says will loosen the grip telecom operators have over how consumers use their cellphones.

Currently, the major U.S. wireless carriers, including AT&T and Verizon Wireless, largely decide which Web sites, music-download services and search engines their customers can access on their cellphones. This is accomplished by wireless companies determining which cellphones will receive their services: AT&T, for example, is the only carrier available to users of Apple’s iPhone.

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