Google has high hopes for the 700MHz spectrum, soon to be de-commission for TV and reinstated as a new toy for many to play with. They don't want to see it in the hands of greedy telecommunications companies, however, and are willing to spend ample amounts of money to make sure that doesn't happen.
Google is stating that, if the FCC plays along with their rules, they will pay $4.6 Billion in reserve to the FCC, for the auction. However, before they are willing to put down the money, they are demanding the FCC adopt certain policies:
But for Google to participate, there's a catch. It's requiring the FCC to adopt all four of its licensing recommendations, no matter who ultimately wins the bidding process.
So even if Google should lose the auction, their goal is to attempt to “encourage” the FCC to make sure whoever gets it plays by certain rules. Those rules include a more open platform than some other companies are suggesting, such as open access to ISPs who are looking to expand service.