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Forums » Has Google Already Lost 700Mhz Auction? » Interesting Note
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Matt
Take me down to the paradise city
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join:2003-07-20
Jamestown, NC
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Interesting Note

I didn't understand why Verizon would bid more for regional blocks than Google bid for the national C block, but this makes it clear:

It's a savvy strategy, because under FCC rules, if the regional bids top the bids for the C block, that block must be split up and apportioned to the highest bidder or bidders. By the end of Tuesday, the regional bids added up to $4.74 billion, about $30 million more than the current total for the C block.

So, Verizon may win the regional blocks, then get to bid again on the C block with no open access rules.

Nice.
permalink · 2008-02-06 10:28:47 · Print · Reply to this
axus

join:2001-06-18
Washington, DC
·Verizon Online DSL

Re: Interesting Note

I don't think they get to bid again, they just win the blocks with the open access requirement.

The reason it makes sense to do it that way, is to save 100 million dollars or so. They could have placed a higher bid on the whole block, but they'd have to bid in increments, say $130 million more. If they can win with just a $30 million overbid, they saved some money.
permalink · 2008-02-06 10:53:53 · Reply to this

TKJunkMail
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Avalon, NJ
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All the bids after Round 17 have been for 1 of the regional groupings instead of for the whole country.
permalink · 2008-02-06 16:43:49 · Reply to this
Forums » Has Google Already Lost 700Mhz Auction?I don;'t think Google »
« Of course a telco was going to get it...  

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