M2Z: FCC Closes Door On Free Broadband Proposal

Commission terminates its AWS-3 'public interest' rulemaking

By John Eggerton -- Broadcasting & Cable, 9/1/2010 12:02:02 PM

M2Z Networks, which has been proposing a free, nationwide wireless broadband service, says the FCC has informed it that it has terminated its AWS-3 "public interest" rulemaking, thus putting the kibosh on M2Z's petition to create the service.

M2Z, whose backers include Charles River Ventures, Kleiner Perkins and Redpoint Ventures, had petitioned the FCC back in 2006 to create the service.

Then-FCC Chairman Kevin Martin had proposed that an auction of the advanced wireless services (AWS) spectrum include a condition that some of it be used for a free lifeline broadband service. But there was pushback, including from the Bush administration, that such a condition would discourage bidders.

In its national broadband plan, the FCC is proposing going ahead with the AWS-3 spectrum auction as part of an effort to free up 500 Mhz of spectrum for commercial wireless broadband.

 "A new nationwide broadband entrant that provided a free broadband service would have created tens of thousands of direct and indirect jobs throughout the country while giving all Americans an equal opportunity to participate in the digital economy," said M2Z CEO John Muleta in response to the FCC move.

"We gave careful and thorough consideration to the proposal, but ultimately determined that this was not the best policy outcome," said Wireless Bureau Chief Ruth Milkman in an e-mailed statement. "We remain vigilant in our efforts to facilitate the universal deployment and adoption of broadband, especially through the much-needed reform to the Universal Service Fund."

CTIA-The Wireless Association President and CEO Steve Largent released the following statement in response to the FCC's decision to close the AWS-3 proceeding:  
                                                                                                     
"We were pleased to learn that the FCC is closing the AWS-3 proceeding and will continue to focus on finding a proper pairing for the spectrum," said Largent. "Contrary to M2Z's statements,  this is absolutely in line with the National Broadband Plan. It is an important step as it supports the efforts by the FCC, Congress and the White House to bring additional spectrum to market so the wireless ecosystem can continue to provide our consumers with the most innovative industry in the world."