Google’s novel idea for FCC radio spectrum auction from USA Today reports Google has put in a proposal to the FCC urging the agency to allow companies to sell radio spectrum through an auction process to others.

The FCC is planning a traditional auction of the spectrum, but Google says this causes licensees to end up with more bandwidth than they actually use. Google’s argument is that in some cases only 5% of available spectrum is currently being utilized.

Instead, Google wants companies that buy the new radio spectrum to be able to resell that spectrum to others, perhaps using a real-time auction model similar to how it sells ads.

Confusingly, Google says it has no plans to buy bandwidth from the FCC directly in the current auction, so Google also doesn’t appear to wish to be a bandwidth reseller. From the story:

But Kovacevich said Monday’s submission wasn’t an indication of Google’s intention to become an active bidder for spectrum itself in the FCC auction later this year.

We discussed this Google idea with Google Leading Wireless Challenge Against Broadband Incumbents earlier this month. More recent coverage at Techmeme.com.

Related Topics: Google: Internet Access | Google: Mobile

About The Author: Barry Schwartz is Search Engine Land's News Editor and owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry's personal blog is named Cartoon Barry and he can be followed on Twitter here. For more background information on Barry, see his full bio over here. See more articles by Barry Schwartz