Google closer to mobile airwaves bid: sources

By Peter Kaplan and Eric Auchard

WASHINGTON/SAN FRANCISCO (Reuters) - Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz) is considering bidding alone on coveted airwaves to launch a U.S. wireless network, as a deadline nears to declare bidding plans, sources familiar with the situation said.

One source underscored that Google had made no decision as of Friday on whether it would bid with partners or on its own in the auction of 700-megahertz spectrum due to begin January 24.

Bidding could pit Google against top wireless carriers AT&T Inc (T.N: Quote, Profile, Research, Stock Buzz) and Verizon Wireless, owned jointly by Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz) and Vodafone Group Plc (VOD.L: Quote, Profile, Research, Stock Buzz).

Going it alone at the government auction of airwaves would not rule out later signing up partners if Google were to win the necessary spectrum to create a network, the source said.

Google executives discussed the auction last week with Federal Communications Commission officials, including FCC Chairman Kevin Martin, sources familiar with the meeting said.

At the talks, executives for the Web search leader gave the impression of "inching more towards" a bid, one source said.

Another said it is "within the realm of possibility" that partners could be brought on later if Google wins. Google has talked to a number of prospective partners, not just carriers.

Google is "making all the necessary preparations to become an applicant to bid in the auction" ahead of a December 3 deadline for applying to participate, a spokesman said in a statement.