“Open Network” A Reality, C Block Of 700MHz Spectrum Hits $4.6 Billion “Reserve Price”

Feb 1, 2008 at 7:18am ET by Greg Sterling

Yesterday the coveted “C Block” of the 700MHz spectrum, which will serve the entire US market, hit the FCC required minimum “reserve bid” of $4.6 billion. Google had promised to bid this amount to trigger the “openness provisions” imposed by the FCC. Effectively the rules now require that “any legal consumer device” must be allowed to access the C Block broadband network.

This is a major shift for the US market and will make it much more like Europe, where consumers can bring any phone (or comparable device) to any network. That’s not what this development will mean precisely; it will represent a single network. But will mean that there will be a national network that will support any consumer device, which could open the door for a range of interesting non-phone wireless devices along the lines of the Kindle, iPod Touch, or Nokia 810.

It will certainly shake up the market.

Google likely participated in the bidding to ensure the $4.6 mark was hit, but it’s unlikely to be the winner of the spectrum (by design). However, it’s likely to benefit from the openness provisions in that forthcoming Android devices and other devices that run Google applications will have guaranteed mobile access.

The spectrum being auctioned becomes available to winning bidders in 2009.

Here’s more coverage and discussion at Techmeme.

Greg Sterling is a Contributing Editor at Search Engine Land, and writes a personal blog Screenwerk, examining the broader world of media and advertising. He also posts at a Local Mobile Search, which is focused on the mobile Internet.

See more articles by Greg Sterling >

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