Apple mulling bid on airwaves auction
274297
Apple Inc. may bid for the rights to a wireless spectrum auctioned by the Federal Communications Commission, a risky but intriguing move that would help carry the consumer electronics company into the telecommunications realm.
511413
KANSAS CITY, Mo. _ The amazing Apple hype machine soon could help unaffiliated wireless carriers sell bunches of music-playing wireless phones.  The debut of the much-heralded iPhone is thought to be imminent, though Apple and AT&T Inc. executives remain mum on the exact timing.
653907
Analysts are still speculating on the rationale behind Apple's decision to release a version of its Safari Web browser for Windows: It could be a play for more marketshare, a bid to bring in more revenues or a way of helping developers reach a wider audience.
470752
Depending on who's talking, the wireless spectrum auction that starts on Jan. 24 will significantly change the mobile and wireless landscape in the U.S., or it won't have much impact at all.Some believe it will lead to creation of new nationwide wireless networks and the entry of new wireless operators. That increased competition could benefit users."This spectrum auction is the first real chance we've had to see a competitor emerge that could compete with the telephone and cable companies," said Gigi Sohn, president of the Public Knowledge consumer rights organization. Aggressive bidding is expected from several well-funded companies that aren't currently in the wireless business, such as Microsoft co-founder Paul Allen's Vulcan Spectrum and Google.Others, however, beg to differ. "The auction won't change anything per se," said Jack Gold, principal of J. Gold Associates, a telecommunications consulting firm. "But other pressures in the system -- market forces -- could ultimately change a lot of things." For example, Gold said he expects more competition and more open wireless networks to emerge over time, no matter who wins the auction.Besides the possibility of new competition, this auction is also receiving a lot of attention because it is likely to be the last time that large chunks of wireless spectrum will become available. Also with this auction, the Federal Communications Commission (FCC) has imposed rules that will, to some extent, open up wireless networks.However, a lot of confusion about the auction remains. Here are the answers to some frequently asked questions.What is being auctioned?The FCC is auctioning off a huge swath of wireless spectrum in the 700-MHz range. This spectrum has been used by television broadcasters, which must return the spectrum to the FCC when they switch next year from analog to digital broadcasts.In particular, the FCC is auctioning many "blocks" of spectrum. Two of those blocks, the so-called C-block and D-block, have enough capacity and geographical coverage to create nationwide wireless networks. The smaller blocks of spectrum also could receive a lot of attention from bidders. Those blocks are regional in nature, and many small telecommunications providers are expected to bid on them.How is the 700-MHz portion of spectrum different than others?The physical nature of the 700-MHz spectrum makes it attractive to users and service providers alike. Many digital cellular systems in the U.S. use radio signals in the 1,800-MHz and 1,900-MHz ranges, although some older analog systems still use spectrum in frequencies as low as 800 MHz. Because radio waves in the 700-MHz range are physically longer than higher-frequency radio waves, they travel farther and are better able to penetrate walls and other impediments.These characteristics are important for several reasons. First, the better penetration makes it feasible to use wireless services indoors. That makes these wireless services competitive with land-line broadband services such as Digital Subscriber Line and cable.A second important advantage is that, because radio waves in this portion of spectrum travel farther, it is easier to bring wireless access into rural areas that currently aren't well served by wireless providers. This greater transmission range also means that operators would need to invest less in towers and base stations and other wireless infrastructure.These advantages, combined with the nationwide coverage, explain why the available 700-MHz spectrum is often referred to in the media as "beachfront property."What technologies can be used in this portion of spectrum?Virtually any wireless technology that is currently in use can also be used in the 700-MHz range. That includes traditional and next-generation cellular service and other wireless broadband technologies such as WiMax.What potential benefits could come from this auction?Besides increased competition, the FCC decreed that the winner of the C-block must make networks that use that portion of spectrum available to any device that employs compatible technology. For example, if a carrier builds an EV-DO 3G (Evolution Data Optimized third-generation) network, any device with that technology built in will be able to access the network.This openness will increase consumer choice. Currently, cellular operators in the U.S. typically limit what devices can be used on their networks and what applications can run on those devices. Because this approach gives them so much control, the incumbent carriers fought the open network provision vigorously.Note, however, that this provision applies only to the C-block. Carriers that win any of the other blocks can continue to limit access to those networks.What other rules apply to the spectrum?The effort to open up new spectrum to all devices was led by Google and several public-interest organizations. In addition, those groups urged the FCC to require that the winning bidders make some spectrum available, on a wholesale basis, to other carriers. That was another attempt to foster more competition among wireless carriers. However, this effort failed. The FCC refused to require winning bidders to resell some of that spectrum although, as always, that could occur voluntarily.There are other limits on how the spectrum can be used. One notable mandate is that any network using the D-block must be built to specifications particular to public safety applications and that portions of the spectrum are available for those uses. Because of the emphasis on public safety, the D-block is mandated to be available to 99.3% of the U.S. population by 2019.There are limits on the other blocks, too. For instance, there are use-or-lose provisions that require wireless networks to be built out within a certain time frame or the license will be lost. This is an attempt to make sure that large companies don't buy spectrum simply to block other companies from acquiring it.Who is bidding?The auction has attracted some predictable bidders, some surprise bidders and many smaller bidders. More than 260 applications to participate in the bidding process were initially submitted to the FCC. The predictable companies included incumbent telecommunications operators such as Verizon Communications and AT&amp;T.Then, there are some well-funded bidders with unknown motives, such as petroleum giant Chevron and Vulcan Spectrum. Also in the mix are some cable operators.Besides the big players, many local and regional wireless carriers have applied to participate in the auction and are likely to bid on the regional chunks of spectrum. A local telephone company, for instance, could use such spectrum to provide wireless broadband service to its local customers using a technology like WiMax.What about Google's bid?The potential bidder that has received the most attention is Google, which has been mum about its specific plans. Most observers believe the company's interest in the auction is tied to its recently announced Linux-based Android mobile phone system.Google likely wants to use Android to sell mobile advertising. However, that won't be successful if existing wireless carriers don't allow phones based on it to be used on their networks. If Google owns the open C-block, it will be certain that phones based on its Android system can be used.Few, however, expect Google to create a whole new wireless network from scratch -- if it wins."Google will rent out the spectrum, said consultant Gold. "It would be insane on their part if they decided to put up their own network. Being landlords of the airspace, that makes sense."As a result, it is widely expected that, if Google wins the C-block, it will work with other providers. For instance, rumors have been circulating that Google will work with T-Mobile USA, which has been constrained in expanding its network by a lack of spectrum. Neither company has been talking about such specifics.How will the auction be conducted?A "mock auction" will be held on Jan. 22, and the auction will begin in earnest two days later. Many observers believe the bidding, which will be largely electronic, could last a couple of weeks.Bidding will be anonymous. That is to say, nobody will know who is bidding or how much they are bidding. The goal of this rule is to prevent collusion aimed at keeping out specific bidders."There are quite a few studies that show that, if you know who is bidding, you can engage in anticompetitive blocking behavior," said Public Knowledge's Sohn.How much will spectrum cost?Buying spectrum will require very deep pockets. In particular, the large, nationwide spectrum blocks will surely be expensive. The C-block, for instance, has a reserve, or floor, bidding price of about $4.7 billion. The total reserve price for all blocks is about $10 billion, and many believe the bidding will go much higher than that.
380013
Bidding begins on Thursday in a  crucial auction of government-owned airwaves that is expected  to help set the future course of the U.S. telecommunications  business.
590579
Bidding begins on Thursday in a crucial auction of government-owned airwaves that is expected to help set the future course of the U.S. telecommunications business.
192965
A bidder on Thursday offered $4.71  billion for a key piece of wireless airwaves being auctioned by  the U.S. government, surpassing a minimum bid requirement and  triggering a condition that the spectrum be accessible to any  device or software application.
458022
A start-up wireless company has  proposed a high-stakes debate with Verizon Communications  before U.S. regulators considering how the government should  conduct an auction of valuable wireless spectrum.
465599
Top bidders put up a total of more than $2.4 billion on Thursday in the opening round of the Federal Communications Commission's auction of coveted U.S. government-owned airwaves.
261227
Apple is unlikely to want to bid in an upcoming wireless spectrum auction, analysts say.
201411
(InfoWorld) - Apple is debating whether to participate in the Federal Communications Commission's Jan. 16 wireless spectrum auction, BusinessWeek reported Monday, but analysts who follow Apple said the company would be crazy to build a nationwide wireless network. "That's way out in left field," said Gene Munster of Piper Jaffray & Co. "They're spending their money on other things like the price cut on the iPhone." Ezra Gottheil, an analyst with Technology Business Research, came to the same conclusion but wouldn't dismiss the report outright. "I wouldn't be surprised if Apple didn't do some head-scratching [on this idea]," Gottheil said, "but I don't see them taking their eye off the ball." Apple would face tremendous risk, something it doesn't need. "And it is a company that can only focus on one thing at a time." Apple would have to come up with some serious cash to enter the FCC auction, which will sell rights to the 700MHz band that TV broadcasters are handing back to the government when they go all-digital in 2009. The BusinessWeek story, however, noted that Apple has nearly $14 billion in cash reserves, more than enough to make the minimum bid of $4.6 billion. The story, which was posted on the magazine's Web site Monday, cited two unnamed sources who claimed that Apple CEO Steve Jobs has studied the implications of joining the auction but is leaning against the idea. Apple's iPhone, of course, is the genesis of any speculation that Apple might compete with other technology companies, most notably Google, in assembling a wireless network. One former Apple executive even told BusinessWeek that it would make sense for the company to give away access. "With the kind of cash position they have and the kind of push they just made into the handset space, it makes a lot of sense for them," the anonymous source said. No way, said Munster. "Not only is that not where they know what they're doing, but that's also not where they want to go. It's pretty clear that Apple wants to be a device and a software company, not a network operator." Van Baker, an analyst with Gartner, said somewhat the same thing, albeit with a caveat. "This would be very far afield for Apple, so I think the odds are very low that Apple would pursue this unless it is in conjunction with a partner," he said. Exactly, chimed in Gottheil. "Apple is unlikely to place a bid itself, but it would very much like someone to build a network they would like, one with a low barrier to entry like low-hourly-fee basic voice and Web access with fees for higher value services," he said. Apple might consider a joint venture of some sort, allowed Gottheil, who tagged Cisco and Google as possible candidates. "Apple has a long-standing relationship with Google, of course," said Gottheil. Three of the seven current Apple board members have ties to Google, including Eric Schmidt, the search company's CEO, and former Vice President Al Gore, who serves as a senior advisor to Google. "[But] they don't want to turn into a utility company. They don't want to risk their culture and too much of their reserves," Gottheil said. "On the other hand, they don't like the existing providers." Apple's -- and Jobs' -- antipathy to wireless carriers, even to AT&T, Apple's exclusive partner in the U.S. for the iPhone, has been the subject of blog postings and pundit musing since the smart phone's debut in June. Last week, for example, when Jobs announced the iPhone's $200 price cut, he made no mention of AT&T, nor did he mention T-Mobile, the wireless carrier that provides the hotspots for Starbucks, Apple's new iTunes partner. "Apple should become more net-centric, but they don't have to own the network to provide cloud-based services," Gottheil said.
312014
Google Inc. is one of 266 potential bidders in a highly anticipated airwaves auction scheduled to begin in January.
748458
Google said yesterday it will bid at least $4.6 billion on wireless airwaves being auctioned off by the federal government, if certain conditions are met.
493249
One of the major questions as the U.S. Federal Communications Commission kicks off a multibillion-dollar spectrum auction Thursday is whether the auction will produce a winning bidder that will challenge telecom and cable-based broadband providers with a national wireless broadband network.
60178
Apple Computer Inc. (AAPL.O: Quote, Profile, Research) could decide to sell a lower-priced of its Macintosh computer to attract consumers already enamored of its iPod music player
88664
AT&T, Verizon Wireless, Google and Chevron are among the applicants for next month's 700MHz spectrum auction.
513292
Verizon Wireless and T-Mobile are expected to be the most aggressive bidders for U.S. wireless airwaves in a January auction that analysts say could give them added resources to expand and improve service.