FCC Consults On Google Spectrum Auction Plan
WASHINGTON -(Dow Jones)- A novel approach to radio spectrum management put forward by Google was put out for public consultation by the Federal Communications Commission late on Thursday, a key step to the plan being adopted by the regulator.
The plan calls for what Google refers to as a "real-time airwaves auction model," which would follow the model the company uses for its online advertising auction.
This allows companies to bid on the placement of their ads on Google's search engine based on how much they are willing to pay per user click-through to their Web sites.
Google argues that in many instances, only 5% of the available spectrum is actually being used, and said its plan would enable more efficient use of the resource.
A real-time auction would allow commercial operators to bid for access to spectrum controlled by the actual licensee. It would potentially allow smaller companies that couldn't afford to buy spectrum on their own to participate in the wireless broadband market.
"Unfortunately, the longtime methods of allocating spectrum still have not made wireless broadband commonplace across America," said Rick Whitt, a Washington-based counsel for Google. "We're grateful that the FCC and Chairman Martin are willing to consider a new framework which we think could reduce prices for consumers, make better use of spectrum, and make broadband more available."
In a notice published on its Web site, the FCC asked whether its current rules would permit such a model to exist and whether it should change its rules to allow it if they do not.
Respondents have just seven days to respond to the notice. There is little indication whether the FCC views the proposal favorably at this stage, but the decision to put it out for comment is a necessary step toward it ultimately being adopted.
- By Corey Boles, Dow Jones Newswires; 202-862-6637; corey.boles@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 26th May 2007