Google Shrewdly Plays Wireless Bid

Don't expect Google(GOOG Quote) to win the upcoming wireless spectrum auction.

But in many ways, the company already may have the prize it wanted. What's more, losing the auction actually may serve the search giant's purposes more than winning would have.

Google said last Friday that it would bid on the 700-megahertz spectrum the Federal Communications Commission is auctioning beginning Jan. 24. Previously used for television broadcasts, the spectrum is highly powerful and could help the search giant make good on its highly ambitious plans for the mobile Internet market.

And with nearly $13 billion in cash and no debt, Google has the balance sheet and financial muscle to be a serious player in the auction.

Still, rather than actually winning the auction, Google's participation is likely intended to secure what it sees as the real reward: ensuring that whoever ends up owning the spectrum allows the open access of applications and devices.

Indeed, as long as this goal is met, it's hard to see why Google would want to take on the costly task of building and running its own network. But given how much is at stake when it comes to the mobile market, Google's vigilance is shrewd, even if it never planned to own the spectrum.