FCC Clears Free Wireless Web

A proposal to create a free, national wireless Internet service got a boost as Federal Communications Commission engineers concluded that concerns are overblown about such service interfering with other carriers. The report clears the way for the FCC to move forward with a plan to auction off airwaves to a bidder who agrees to offer free, national wireless Internet service. The FCC is expected to finalize rules this year and could begin auctioning off airwaves in early-to-mid 2009. Wireless companies and some lawmakers have raised concerns about the plan, because the proposed auction rules appear to favor M2Z Networks, a Kleiner Perkins-backed start-up that originally floated the free-Internet plan two years ago. M2Z originally asked the FCC to give it a national 25 megahertz block of airwaves to build a national wireless Internet network. The start-up said it could pay for the build-out via advertising and a subscription-based plan for consumers willing to pay more for faster service. The idea of handing out airwaves potentially worth billions didn't go over very well at the agency. But in May, Mr. Martin proposed auctioning off the airwaves to a company willing to set aside some of its airwaves for free use. The network would have to reach 50% of the US population in four years and 95% within a decade.