Of Course Google Lost the Spectrum Auctions!

I always thought it was crazy talk, all this speculation that Google was going to run a wireless network by buying up billions of dollars worth of spectrum. Why would it endanger those juicy margins with a marginally profitable business when it pretty much got what it wanted from the Federal Communications Commission: the requirement that wireless subscribers be able to use any hardware or run any software on whatever service is developed on the spectrum?

Turns out it was indeed crazy talk. Verizon Wireless walked away with the lion’s share of the spectrum getting freed up by the move to digital TV next February. And I bet Google’s very happy that it didn’t have to spend $9.6 billion, which will buy a heckuva lot of Web 2.0 companies or even bigger prey. Sure seems like the game theorists Google apparently hired did their job. Or at least the auctioneers at the FCC.

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