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Verizon responds to Google’s accusations

Posted by Joe P on May 7, 2008

It didn’t take long for the nation’s No. 2 wireless carrier to respond to accusations by Google. The Internet giant, which was essentially Verizon’s only competition for the C Block of the 700 MHz auction — even though Google was a token participant — claims that Verizon plans to ignore the open access provision attached to that block. Google wants the deal blocked until Verizon promises to completely uphold the agreement. Verizon responded yesterday, and were economical with their words.

“This looks like sour grapes,” said Jeffrey Nelson, a Verizon Wireless spokesman. “What a surprise, Google submitting yet another regulatory filing. We knew the rules of the auction before bidding and winning spectrum, and of course we’re going to abide by those rules.”

I’m not sure how it’s sour grapes. By all observable evidence, Google didn’t have serious intentions to win the C Block. Yes, they’ll tell you, they bid the reserve price of $4.6 billion, which is no chump change, even to them. But they had to have known that Verizon would top them. And if they didn’t, I’m sure Google could have figured out how to recoup the investment.

To me, it sounds more like they’re trying to open up all possible avenues for their Open Handset Alliance. Android should be debuting later this year, and the more places it’s available, the better off Google will be.

Still, it will be tough to judge any of these accusations until Verizon is actually able to utilize the spectrum, which won’t be until February 2009 at the earliest. All indications, however, point to a much longer wait, as they plan to use it to fuel their 3G LTE network, which will take a bit longer to get up and moving.

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Filed under : 700 MHz Spectrum




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