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Google Bids On Wireless Spectrum

Hot on the heels of Google's Android announcement (commonly referred to as the "Gphone"), G's next move will be to bid on open wireless spectrum set to be auctioned off by the FCC in January. The move is a logical step forward for a company whose mobile future depends on scale. Google's wireless network would free consumers from the exclusive contracts binding them to certain handsets on certain mobile networks. Having its own network would also give the search giant leverage in negotiating deals to let its software run on rival carriers' networks.

Google's open software initiative, which centers around the operating system Android, aims to free up the mobile Web to make it more like the traditional Internet. Another potential plus for consumers, aside from an improvement in mobile Web software and innovation, is a decrease in the cost of handsets and wireless subscriptions.

However, such a rosy future would come at great cost--and risk--to Google. The company has to win the FCC auction, which would cost an estimated $4.6 billion. It would then have to build the wireless network out at another cost of several billions. Time is another factor-it might take years before the network is complete. It has until Dec. 3 to make its intentions known to the FCC.

Read the whole story at The Wall Street Journal »

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