Google Cops to Spectrum Auction Game Plan

SAN FRANCISCO - Tell us something we don't know.

Google(GOOG Quote) on Thursday revealed for the first time that it had been among the bidders for the federal 700-megahertz spectrum auction, which provides access to the Internet via mobile devices.

Verizon(VZ Quote) ultimately won the bid last month for a hefty price tag of $4.74 billion.

But the Mountain View-Calif.-based company now says that was all part of the game plan.

Google had said last July that it would guarantee a minimum $4.6 billion bid if the Federal Communications Commission would grant four license conditions the company sought for the spectrum. The FCC granted just two, giving open access to outside applications and devices, but Google proceeded with a bid.

"Google's top priority heading into the auction was to make sure that bidding on the so-called 'C Block' reached the $4.6 billion reserve price that would trigger the important 'open applications' and 'open handsets' license conditions," wrote two of the company's lawyers on the corporate blog. "We were also prepared to gain the nationwide C Block licenses at a price somewhat higher than the reserve price; in fact, for many days during the early course of the auction, we were the high bidder. But it was clear, then and now, that Verizon Wireless ultimately was motivated to bid higher (and had far more financial incentive to gain the licenses)."

Most observers had already assumed that Google had, in fact, bid, and some had even worried that the company would win the auction, which could have added risk to the company's business operations.

The company's lawyers said that the auction "doesn't mark the end of our efforts toward greater wireless choice and innovation."

"We will weigh in at the FCC as it sets implementation rules for the C Block, and determines how to move forward with a D Block re-auction," they wrote on the blog.

The FCC plans to use the D block for public safety networks.

Shares of Google closed Thursday off 2.2% to $455.12.