Republican lawmakers say Google "gamed" 700Mhz auction

Google's plan in the 700MHz auction drama was never much of a secret: it was always assumed that the search giant would bid enough to trigger the open-access provisions, but wasn't really interested in winning, and sure enough, the company confirmed that strategy when the bidding wrapped up. Of course, news travels slow in our nation's capital, and word of Google's dastardly plan to make sure the FCC's open-access rules were triggered is apparently shocking news to a handful of Republicans, who characterized it as "gaming the system," and asked FCC chairman Kevin Martin if the agency had been "duped." Newsflash to Reps. Fred Upton (R-Mich), Cliff Stearns (R-Fla) and John Shimkus (R-Ill): the FCC, Google, and Verizon argued about this for months and analysts had a field day, remember? And then Verizon gave up the lawsuits, went crazy on the open tip, and won the auction anyway. Of course, if Verizon hadn't won, Google would have had to make good on that $4.6B bid, which isn't exactly chump change. So, who gamed what? If anything, the FCC's coffers got a little fatter than they would have otherwise, and we're pretty certain consumers will benefit from open-access, so, uh, you guys want to stop wrecking the party now? Cool.

[Thanks, Scott]

[alexmueller @ Apr 16th 2008 4:38PM]

Shouldn't say this on a gadget blog but I will anyway, their republicans what do u expect?

[CraigJ @ Apr 16th 2008 4:40PM]

Whose Republicans?

[Ken @ Apr 16th 2008 4:41PM]

You're republicans

[looseinthedeuce @ Apr 16th 2008 4:44PM]

Are republicans?

[alexmueller @ Apr 16th 2008 4:48PM]

sorry should be they are, grammar police

[Zeus.:God @ Apr 16th 2008 5:07PM]

Or just "they're".

[ethana2 @ Apr 16th 2008 6:26PM]

I may have to go independent...

We need a USE YOUR BRAIN party.

[Mr.Tech @ Apr 16th 2008 7:00PM]

Gamed? Not really, Google would had to put the 700mhz line into use anyway so it's a win/win for both side, besides they all knew the risks.

[UKNigel @ Apr 16th 2008 7:02PM]

Ron Paul would have none of this lawsuit madness.

[Homeboy @ Apr 16th 2008 7:08PM]

I see what the three of you just did there.

[mattbates @ Apr 16th 2008 10:05PM]

the 700Mhz spectrum isn't a big truck. It's a series of tubes. And if you don't understand, those tubes can be gamed and if they are gamed, when you put your money in, it gets in line and it's going to be delayed by anyone that puts into that tube enormous amounts of political power.

[feffrey @ Apr 16th 2008 11:33PM]

personally I am a libertarian, so they are not my republicans

[Ty @ Apr 16th 2008 4:38PM]

QQ FCC, QQ.

[Blaine Oliver @ Apr 16th 2008 5:18PM]

Why dont we sue google for the logo copywright infringement?

[FoxHoundADAM @ Apr 16th 2008 4:41PM]

You post this like the goverment has the best interest of us citizens in mind.

[rv @ Apr 16th 2008 8:31PM]

Ha. Its sad actually, because I think me and many others aren't surprised by this. The government got more money, and the citizens got the win from the open auction. Seriously, what the hell?

[Alexander @ Apr 17th 2008 4:13AM]

They don't? But they told us about the weapons of mass destruction?

[Smart People Play Tuba @ Apr 17th 2008 8:46AM]

For the congresspersons in question to actually raise a stink about this is like them holding up a sign that says:

HEY, LOOK! I'M IN THE POCKET OF BIG BUSINESS! I DON'T CARE ABOUT CONSUMERS, MY CONSTITUIENTS, OR ANYONE OTHER THAN BIG COMPANIES WHO'LL GIVE ME CAMPAIGN CONTRIBUTIONS TO KEEP MY HAPPY @$$ IN OFFICE!

It's the same way with that so-called "College Opportunity and Affordability Act" (H.R.4137), the one that has language in it where colleges might have their FUNDING PULLED if they don't stop their students from file-sharing copyrighted music and movies. (It's been passed by the House and is in the Senate RIGHT NOW, btw). Any legislator who goes for that crap is holding up the same big sign over their head.

I say, let's vote them all out of office! Geeks, UNITE!

[whowhatme @ Apr 16th 2008 4:42PM]

republicans:technology::saltwater fish:freshwater aquarium

[Nick @ Apr 16th 2008 4:48PM]

Regardless of if that is actually the case, awesome comparison!

[AndrewT @ Apr 16th 2008 7:00PM]

Actually some saltwater fish can be converted to freshwater aquarium. It would be better like this: republicans:technology::fish:land =P

[Andir3.0 @ Apr 16th 2008 8:09PM]

Republicans do what Microsoft tells them to. I thought it was common knowledge? (And no, this isn't just me pushing my anti-Microsoft rhetoric. Look it up.)

[Encoding @ Apr 16th 2008 8:25PM]

@AndrewT

fish:land is no good either:

http://en.wikipedia.org/wiki/Walking_catfish

how about:

fish:tartar_sauce

[rlee @ Apr 16th 2008 10:16PM]

democrats on technoblogs are as controllers w/out video game systems, all they're good for is pointlessly bashing things (either your new HDTV {Wii} or republicans)

[Calviin @ Apr 16th 2008 11:23PM]

Except, AndrewT, that some fish can also go up on land. For example, look up the African Lungfish.
http://en.wikipedia.org/wiki/Lungfish

[Smart People Play Tuba @ Apr 17th 2008 8:52AM]

Okay, you're all beating around the bush, so I'll say it . . .

It's not just Republicans or Democrats . . . it's OLD PEOPLE.

These guys didn't grow up with technology like we did, so they often times don't know what the hell they're talking about. Why else would it take them THIS long to complain about this Google/700Mhz thing?

We need folks like US to run for office.

Hmm . . . that gives me an idea.

[Evan @ Apr 16th 2008 4:44PM]

I hope you didn't expect them to be engaged with current events or keep up with the news.

[Mischa Lockton @ Apr 16th 2008 4:48PM]

There's no law against that as far as I know.
Not like bidding as a schill on your own auction.
As you said, if the bidding stopped there, they would have had to pay.

Go Gooooooooogle! Go Open!

[Mark @ Apr 16th 2008 4:49PM]

yea google! stick it to the man!

[Josh L @ Apr 16th 2008 5:14PM]

Yeah, stick it to The Man! Like they stuck it to The Man by censoring the internet for the Chinese! Or like they stick it to The Man by abetting click fraud!

YEAH!

Google IS The Man. What are you talking about?

[Jon Doe. @ Apr 16th 2008 6:06PM]

Google is the man lite...

[daniel @ Apr 16th 2008 4:50PM]

i would like to thank CraigJ for best comment.

[Roy @ Apr 16th 2008 4:53PM]

I'm sure Verizon has these douchebags in their back pocket, funding their next campaigns or any other tactic large companies take to grab politicians by the balls to control legislation.

Trashy Verizon. Trashy Politicians.

[apeguero @ Apr 16th 2008 4:55PM]

If it's not reported on Fox News then it's not news to the Republicans in Congress. What douche bags! What I find really surprising here is that there's actually a Republican in government in Michigan. This country needs a third party made up of young bloggers with engineering degrees.

[rlee @ Apr 16th 2008 11:14PM]

I'm pretty sure that you just defined a major constituency of the Democratic Party.

Oh, and if you think a republican senator in Michigan is weird, what did you do when you found out Mitt Romney was the guv'nor of Massachusetts?

[apeguero @ Apr 17th 2008 10:26AM]

Don't blame me. I voted for Muffy!

[Frankenstein Black @ Apr 16th 2008 4:59PM]

- Consumer’s and Google benefited - Open access
- Verizon (and AT&T) benefited - Won spectrum
- The FCC benefited - price got pumped up
(Unlike the previous auction’s Epic Fail a couple years ago)
But guess what? Those two greazy Repube’s didn’t and they are kinda “bitter”!

[MBS @ Apr 16th 2008 5:16PM]

You don't really think that the politicians are coming up with this on their own do you?

This is a case where at&t/verizon are pressuring the congressmen they boug... ehh, have under their influence to get rid of that pesky open access clause of the expensive spectrum they bought.

[mabhatter @ Apr 16th 2008 8:36PM]

I I think you hit the nail on that one. Now that the dust settled, the telcos (entrenched party) want that priced knocked down as exorborant due to Google's "bad faith". Frankly, if lawmakers were to do this, Google should get with Yahoo and anybody else and put together tender for another $0.1 B more.. if lawmakers want they would then have to let Google buy the spectrum instead of Verison, or expect a big check. Google may end up in the spectrum business after all and that would be better than those clowns getting it.

[peshue @ Apr 16th 2008 5:01PM]

As politicians they're in no place to complain about "gaming the system".

[Warren @ Apr 16th 2008 6:26PM]

WINNER! lol

Best comment of 2008 so far.

[az1324 @ Apr 16th 2008 7:02PM]

True, but they are complaining because they think they have exclusive rights to game the system and they probably smell a missed lobbying opportunity.

[Doz @ Apr 16th 2008 5:01PM]

I don't see much coming out of this. Google knew what they were doing and had it turned on them, $4.6 bil is trivial compared to what I hear they have for cash on hand. They would have done something with it.

[Dude @ Apr 16th 2008 5:01PM]

What do you mean Republicans said? YOU SAID IT!

"If it wasn't clear going into the auction, it's pretty much obvious now that the dust has settled: Google wasn't in the 700MHz Block C auction to win it"

http://www.engadget.com/2008/04/04/google-elaborates-on-the-c-block-auction-still-happy-with-the-r/

[Nilay Patel @ Apr 16th 2008 5:59PM]

I know we said it -- that's why it's linked in the post. We've all known that was the plan for nearly a year. It's surprising that anyone's taking issue with it now.

[Zingerhill @ Apr 16th 2008 5:09PM]

They absolutely gamed the system. They hired mathematicians with expertise in game theory. All the carriers do. If you are not prepared to deal with the results of an auction, don't do auctions.

Don't hate the player, hate the game.

[Robert Syputa @ Apr 17th 2008 9:16PM]

Yes, of course they gamed the system .. everyone bidding wants to gain a position favorable to their business intent. Google is not a hardware company or a network operator... and they have made their intent clear to anyone who understood their position. We considered it unlikely that Google wanted to acquire the spectrum except as a last recourse to having it become open access. If Google had been, reluctantly, the winning bidder, they would likely have sub-licensed the deployment and operation of the network to other companies. If they had won, Google probably would have set requirements to operate in the spectrum that go beyond the open access requirements imposed by the FCC as would be their prerogative.

[gabe @ Apr 16th 2008 5:14PM]

I dislike republican politicians

[CraigJ @ Apr 16th 2008 5:28PM]

I dislike all politicians. Oh, and lawyers (Nilay excluded)

[David W. @ Apr 16th 2008 5:30PM]

I hate ALL politicians.