FCC Rejects M2Z Free Broadband Proposal
The FCC pulled the plug on M2Z’s proposal for a free broadband network in the AWS-3 band, which had been before the commission since 2007, the company said Wednesday. M2Z’s proposal faced continuing opposition from industry, especially T-Mobile, the top bidder in the AWS-1 auction. The FCC notified M2Z backers of its decision to end the AWS-3 public interest rulemaking “thereby closing off the possibility” of the free network, the company said.
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The FCC had committed in the National Broadband Plan to making a decision on AWS-3 this year and holding an auction in 2011. The agency, working with NTIA, has yet to identify spectrum that might be paired with the 20 MHz AWS-3 band (2155-2175 MHz) in an eventual auction.
"We gave careful and thorough consideration to the proposal, but ultimately determined that this was not the best policy outcome,” Wireless Bureau Chief Ruth Milkman said. “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.”
Carriers as a group were pleased with the development, but M2Z was sharply critical. “The public interest is not served by delaying the availability of broadband spectrum,” M2Z CEO John Muleta said in an interview. “The commission has offered no schedule, no time line for when AWS-3 would be available. They haven’t addressed the issue on the record. The public interest is not being served by this decision.” Since the FCC is merely terminating a procedure, the move leaves M2Z with few options for appeal, Muleta conceded.
"There continues to be considerable support from the public for a free nationwide broadband service,” M2Z said. “The FCC record shows that during the pendency of the AWS-3 rulemaking, more than 50,000 Americans signed a petition supporting the proposed rules while the FCC and members of Congress received over 20,000 letters and e-mails in support of the proposed rules. Government officials outside of Washington -- faced with a growing digital divide and a poor economy -- also saw merit in this innovative private sector solution.” More than 300 local, state and federal officials from across the U.S. supported the proposal, the company said.
Contrary to M2Z’s statement, “this is absolutely in line with the National Broadband Plan,” said CTIA President Steve Largent. “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. As we had argued throughout the proceeding, a designer allocation auction that would be tailored for one company was not in the public’s interest, especially when that company was offering broadband service that is slow by even yesterday’s standards.”