The Federal Communications Commission (FCC) has turned down a free WiFi plan put forward by M2Z Networks saying that the regulatory authority can not permit a single company to control a large segment of spectrum without overlooking the public interest.
M2Z Networks has applied for a license petition to use the unused spectrum, 2155MHz-to-2175MHz band to provide WiFi services to customers including free 384Kbps broadband with the option of paying for higher speeds. The company has also agreed to pay the US Treasury 5 percent of its gross revenues annually for using the spectrum band. Much earlier, NetFreeUS has made a similar bid, but FCC rejected that.
FCC has also cited that the 384Kbps downstream speed is very low. Thus it can not be taken as broadband if a fresh regulation that proposes to increase the current benchmark from 200kbps to 2Mbps is approved.
The FCC decision has made the two leading mobile operators, AT&T and Verizon Wireless happy as they have always demanded regular auction process for the airwaves.
