Google Bidding in Spectrum Auctions

I read a rumor that Google is bidding in the upcoming FCC spectrum auctions.

This is a very shrewd move by Google. The telecom companies are trying to abolish network neutrality and squeeze out companies like Google. Google has to defend its market position by becoming a telecom company!

I have even better advice. Google has a market capitalization of around $200B. Sprint-Nextel has a market capitalization of around $40B. Sprint-Nextel has been notoriously poorly mismanaged.

Instead of buying spectrum, Google should outright buy Sprint-Nextel! It probably would be cheaper for Google to directly buy Sprint-Nextel than to purchase national wireless spectrum rights and build out a network.

I suggest Sprint-Nextel because Verizon and AT&T have a market capitalization that is too high to make a buyout by Google practical.

That is one of the defects of the current economic system. It is frequently cheaper to outright buy your way into an industry, instead of directly building a competing business from scratch. Google should take advantage of its high priced stock.

It would probably be cheaper for Google to buy an existing telecom corporation than build out its own network. On the other hand, Google probably isn't going to do a hostile takeover, so building out their own telecom network may be their best option.