When the FCC first released their rules on the upcoming 700Mhz spectrum auction, the phone industry was outraged that they might not be able to transfer their closed, restrictive 3G model onto any new broadband network they might build with obtained spectrum. Verizon lobbyists argued that the increased choices you might gain from an open network were actually bad for consumers.

Then, once they seemingly realized that the rules were full of loopholes that maintain the status quo, both Verizon and AT&T quieted down. Now that Verizon lawyers have had more time to dig through the rules, they've apparently found some language they didn't like -- and are suing the FCC. They're now calling the rules "arbitrary, capricious and…contrary to law."

Google posted a comment to their blog stating that:Of course, as some have noted, if a bidder plays their cards right, it's possible to win the spectrum with no conditions whatsoever.