Selling a Long-Shot Idea: Free Internet Access

SELLING A LONG-SHOT IDEA: FREE INTERNET ACCESS
[SOURCE: Washington Post, AUTHOR: Kim Hart]
A start-up founded by a former telecom regulator hopes to someday build a nationwide network offering free high-speed Internet with family-friendly content filters. But M2Z Networks' proposal hinges on a big condition: It needs free airwaves from the government. Such airwaves are usually sold at a premium, and to stake its claim, M2Z may have to beat out deeper-pocketed wireless companies and Internet giants. To be better positioned to press his case, M2Z chief executive John Muleta -- former head of the Federal Communications Commission's wireless bureau -- has temporarily shifted the company's operations from Menlo Park, Calif., to Arlington. If granted the airwaves, M2Z says it will build a network that offers free Internet service to anyone with a computer or cellphone. M2Z would make money by selling advertising on its free service and charging for a higher-speed service. In return for the free airwaves, M2Z promises to give 5 percent of its revenue to the government. The proposal, submitted in May 2006, has stirred up interest in a forgotten piece of the radio spectrum, catching the attention of companies such as AT&T and Google. But the company's idea hit a roadblock three weeks ago, when the FCC dismissed M2Z's application. This month, Muleta sued the agency, claiming that it dismissed M2Z's request without properly evaluating it. Last week, the FCC asked for more input to determine the best use of the spectrum, sparking renewed debate about how consumers should be able to connect to the Internet. M2Z plans to resubmit its proposal.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/23/AR200709...
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