nasadude
join:2001-10-05
Rockville, MD
 ·Comcast
1 edit | reply to GOLFnSUN
Re: Google has an easy choice - win the bid and set own rules
said by GOLFnSUN  :... all they have to do is bid enough money to win the auction. Then they can set their own rules. ... this is true. The preferable (from a competition point of view) approach would be to put conditions (open access, etc.)on the spectrum, so no matter who wins there would likely be some new competition.
However, I would love to see Google outbid the telcos, but they start at an extreme disadvantage unless they don't care about recouping their investment in the spectrum. The telcos have the advantage of the "lock out" premium - there is the value of locking out competition over and above the nominal business value. If the telcos keep any competitors from winning spectrum, it's worth billions to then in monopoly profits.
that's actually the dirty little secret of this (and every other recent) auction and why the current rules are highly unlikely to result in any new competition (unless Google doesn't mind throwing away money). |
