The 700MHz auction has been receiving an amazing amount of coverage in the press lately.  That is warranted because this auction will affect the future of wireless internet and wireless services for all of us.  Some companies have the power to influence all telecommunication, cable, and internet providers.  Unquestionably, the next few weeks will be crucial in determining the path that wireless services travel.

The auction will take place on January 24th, 2008, and 214 total bidders of the 266 initial applicants will be fighting it out for wireless spectrum.  You have the big telecommunication companies, which are going to be bidding hard, but you also have smaller companies that will be bidding on blocks as well.

I am sure that some of you have seen the commercial in which they explain that people are pretty much going to be screwed in February 2009 if you still use an antenna to watch television.  All the news is about the 700Mhz spectrum auction.  That vacated portion of the spectrum is exactly what is being auctioned off.

Many people do not understand the true impact that this auction will have.  Let's say that there is a person who lives in a neighborhood where there is only one provider of internet services, and the ISP is charging very high prices for the services.  This auction might give smaller but able competition the chance to offer the same person those services for cheaper.  It is all about creating competition.

The auction has been split off into five separate blocks.  The A, B, and E blocks will be valuable to smaller companies which will be offering services in regional areas.  The C and D blocks will draw much more of a crowd because these allow a nationwide network, and the likes of Google, Verizon, and AT&T will be pouncing on those.

Essentially, this is an important time in shaping the future of wireless services.  While larger companies like Google could shake up all the telecommunication companies, smaller companies can get their legs in the door to be competitive.  I hope that this brings lower prices and competitiveness to all potential customers.

[Source: Ars Technica]