FCC has rejected Verizon's requested changes of the new open-platform wireless auction, set for January 2008. Google has pledged to buy some of the available wireless bandwidth in order to launch an open-source Google phone to compete with the carriers. [Reuters]
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Agree with JustaGuy. There is nothing in the article about google pledging to buy anything. Also, they have not mentioned anything about their own competition with carriers but I heard they wanted to provide a phone for the carriers not start their own carrier service.
Justaguy2 is right, Google has only indicated they might bid at this point. Anything else about Google's plans is still speculation, but the likelihood of a Google-designed OS on at least one phone, possibly more, is growing--and any Google product in the mobile phone space is competition.
Google has NOT pledged to buy some of the spectrum - it has stated that it would commit to bidding, if certain requirements were met. As those requirements were not entirely met, the company has no obligation, legal or otherwise, to bid, and certainly no obligation to win.