It’s close but no cigar for Google in the Federal Communications Commission’s much-anticipated auction of public airwaves, a process that could enable a new wave of wireless devices and services.

Bids for a national bundle of licenses known as “C block” of spectrum in the 700 megahertz range reached $4.29 billion Wednesday, falling short of the FCC’s minimum price of $4.6 billion to trigger “open-access” conditions.

Google has championed rules that would require the winning bidder to open networks built on the spectrum to other service providers, devices and software. Google has said it might put up $4.6 billion itself or more in the auction.

But it’s not clear yet whether the Web search giant has submitted a bid; the FCC is keeping participants’ identities secret until the auction is over.

The C block, which has roughly one-third of the total spectrum up for sale, is the auction’s big prize. Wireless companies covet the 700 MHz spectrum because signals can go long distances and easily penetrate buildings. Those features make the airwaves attractive for wireless Internet services.

The $4.29 billion offer might have come from Google, but Verizon Communications is another likely bidder, observers say.

Both companies may be trying to avoid a bidding war, analysts say.

“The most likely scenario is that Google is bidding against Verizon, that they’ll get to the $4.6 billion threshold, and that Google will then drop out,” said Blair Levin, analyst at Stifel Nicolaus.

That scenario assumes Verizon would ultimately top Google’s bid. Open access rules would be applied even if Verizon wins the C block airwaves with $4.6 billion or more.

“We’ll get there to trigger the open access conditions,” said Paul Glenchur, an analyst at Stanford Group. “Google will have at least half a loaf at that point. Whether they go beyond that (to own spectrum) is a function of a lot of things.”

Google hopes to build a big business sending ads to cell-phone users, as it has done with computer users. But its search services and software have been harder to use on mobile phones because wireless carriers have kept a tight rein on what devices can operate on its networks and what software and features they offer.

Total auction bids reached $11.6 billion as of Wednesday. The FCC has estimated the auction would raise $10 billion to $15 billion.

Bidding remains stalled on another chunk of nationwide airwaves, called the D block, that must be shared by commercial service providers and public safety agencies.

The FCC has received only one bid for the spectrum, $472 million, well short of the FCC’s $1.3 billion minimum.

Startup Frontline Wireless, a likely bidder for the D block airwaves, dropped out of the auction just days before it began on Jan. 24.

Wall Street’s credit crunch hurt Frontline’s ability to raise money, says George Reed-Dellinger, an analyst at research firm Washington Analysis. But the regulatory strings attached to that set of airwaves might also be a factor, he adds.

Under the FCC’s rules, the D-block licensee will be required to build out a nationwide network and give public safety agencies priority use during emergencies.

“There’s been turmoil in the capital markets,” Dellinger said. “But mostly it’s all the conditions that have been put on the licenses. That has reduced interest.”

If no new bids are made for D-block spectrum, the FCC could re-auction the airwaves at lower price and, perhaps, with no open-network requirements.

However, Dellinger says it’s more likely the FCC would negotiate with the existing $472 million bidder, which he says is most likely Verizon or AT&T.

Creating a new public safety network through the spectrum auction has been a goal of Congress.

Congress ordered television station owners to return the 700 MHz airwaves in early 2009 as they move to digital from analog broadcasting.