Next January, the Federal Communi­­cations Commission will be conducting a very rare auction for the 700 megahertz band, a large portion of the radio frequency spectrum that has been used until now for television broadcasting. Since broadcasters on this frequency will be departing the airwaves for the realm of digital broadcasts in 2009, this relatively low-frequency, highly desirable part of the spectrum will be up for grabs for the first — and likely the last — time in decades.

Don’t expect the band to come cheap. The FCC has set a minimum reserve price of $4.6 billion on the item up for auction. This means that bidders will have to pay at least that much for the privilege of a virtually perpetual license to control the band. Estimates for the final closing price range anywhere from $9 to $15 billion. Understandably, this astronomical price tag excludes all but the biggest players in corporate America.

Traditionally, “the biggest players in corporate America” would have meant the large wireless telephone companies operating in the U.S., such as Verizon and the recently re-formed AT&T Wireless. However, technology giant Google violently shook things up this summer when it announced that it would be willing to bid in the auction, provided that the FCC agree to attach four rules regarding open access to the band.

Last month, the FCC made its decision: it would uphold two of the four Google-proposed rules. The rules require that the winner of the auction both not discriminate against other content providers and also allow customers to use any device on any networks they desire. The other two provisions — which would have mandated that winners provide access to their frequencies at wholesale rates and allow all “technically feasible” interconnects with other networks — were not approved, but it’s likely that Google was appeased enough by the FCC to throw its cash into the ring.

On the one hand, having a new powerhouse that is capable of competing with the traditional change-resistant telephone companies is a blessing for us as consumers. Without Google, we wouldn’t even be talking about this auction; the mobile phone oligopoly would gobble it up and that would be the end. With Google, there is now a driving force to shake things up.

The question remains as to what exactly Google plans to do with the frequencies if it wins the auction. Shadowy rumors of a so-called “G-Phone” have circulated across the Internet, and if there were any merit to them at all, the 700 MHz band would be perfect for a nationwide phone network. However, this is only the beginning of what Google could accomplish with this incredible tool at their disposal. Combining the 700 MHz band with their existing nationwide infrastructure of data centers and fiber optic cable, Google would be in a great position to compete with the entire telecommunications industry.

The idea of Google as a telecommunications power brings its own suite of fresh concerns. Once, not too long ago, Google was the darling new kid on the block. Now, however, the company finds itself the subject of increasing scrutiny for playing fast and loose with the privacy and intellectual property of others. How long will it be until we’re sitting here reading about Google as the evil corporate power and rooting for the newcomer to bring changes to the market?

For the time being, I think that Google accomplished something good for consumers by lobbying the FCC for open standards. Assuming that the auction goes through as planned (which it should, pending the outcome of a last-ditch lawsuit filed by Verizon to block it), we can rest assured that we won’t be locked into multi-year agreements with any particular company, and that we’ll be able to choose from a wider selection of devices than we otherwise would have.

Of course, if Google does win the auction, they can implement the other two parts of their plan as they wish. The question is, if they are no longer the underdog, will they still be so keen to stand up for our rights?