Is Google really going to bid in the upcoming FCC 700Mhz spectrum auction? If you ask the company’s CEO Eric Schmidt, the answer is "probably." The outspoken exec said as much during the final keynote of the Progress & Freedom Foundation’s Aspen Summit last night and our sister publication FierceWireless was on the scene. "When we looked at the FCC ruling we felt we got the spirit of the ruling," Schmidt said. "We want open access. That’s good for Google. And we would be delighted to see it happen."

Schmidt also indicated the company may be interested in working with other partners in the auction. "During this period we can collude," he said. However, he stopped short of elaborating on who those potential partners may be. Earlier this month, The Wall Street Journal reported that Google has invested hundreds of millions of dollars in developing prototype devices and is negotiating with the likes of T-Mobile USA and Verizon Wireless to get its devices spread across several carriers.

Schmidt also waxed on about his company’s vision of taking its online advertising model to the wireless phone noting that most mobile phones today have GPS capability and integrated cameras, making them perfect devices for targeted marketing and advertising directly to consumers. "This is a huge advertising opportunity. That ad is worth money," Schmidt said.

For more on Google’s probable bid:
– see this FierceWireless story