Well well well, since Verizon didn't get its way when the FCC set the rules for the 700 MHz spectrum auction, they have decided to fight back with their lawyers. Ars Technica reports that Verizon is suing the FCC to browbeat it into abandoning its "open access" requirements for the spectrum. One of those requirements stipulates that any device that is capable of utilizing the spectrum must be allowed to. This is seen by Verizon (and AT&T, which is also bidding) as an affront to their proprietary lock-in model.
As seen by the rush to rush to unlock the iPhone from AT&T's shackles, consumers do NOT liked being locked in when they buy certain gadgets. Unfortunately, Verizon and AT&T want the 700 spectrum for themselves, and are pitted in a fight with Google over it. Google was the one that asked the FCC for open access requirements, and out of their four demands, the FCC granted two as a compromise (although if Google buys the spectrum, then they can voluntarily implement the two that they didn't get).
Aside from consumer choice of products, the spectrum auction will be pivotal in the battle for net neutrality, as well as broadband penetration nationwide.
First off, if the 700 MHz spectrum is bought by Google (who in turn will lease it out to another company to maintain it for them) it will provide a viable alternative to cable and DSL. Think of WiFi, but with signals that could be available nearly everywhere. Since the spectrum is the same one that currently serves certain broadcast television channels, this will allow for broadband penetration in parts of the country that have been left behind by cable and DSL providers (especially in rural and poorer inner-city areas). Dial-up is the sick man of the internet, but still lingers because people in these parts of the country do not have a convenient alternative. Further more, such a service could be delivered at an affordable price. Imagine paying only $10-$15 per month for 40-80 Megabits per second? Or how about $20-$25 for 100-150 Mbps? This what is already going on in fiber-laced Japan and South Korea. While FiOS could do this in theory, a lack of government regulation like that in those two countries will mean that Verizon can gouge you for the same service that a person in Tokyo or Seoul gets for very little. And if Verizon or AT&T get the spectrum, then the prevailing monthly prices for broadband overall will stay high, as the existing ISP's (protected by local franchise agreements) will not have a viable competitor.
In addition, keeping the spectrum out of telecom hands will be a victory for net neutrality. AT&T, the same company that censored Pearl Jam and whose former CEO wants to gouge websites that use his company's bandwidth, is a major player in this auction. They already want to lock down that series of tubes now wants to block that series of airs.
If the spectrum is purchased by Google, a company that has a model that depends on net neutrality, then they can market themselves that a fair alternative. Even in the absence of net neutrality legislation, if AT&T or Verizon start slowing down websites like Daily Kos and favor sites like FoxNews.com, then we the consumers can simply drop our subscriptions and switch to wireless broadband.