Other Contenders Ready to Soldier On Even if M2Z Is Rejected
Other contenders for 2.1 GHz spectrum say the FCC’s expected rejection of M2Z’s application shouldn’t mean the end for their proposals. M2Z’s plan has received the most attention. But other companies including NetfreeUS, NextWave, TowerStream, Open Range, McElroy Electronics and Commnet Wireless have rival proposals before the FCC to use the spectrum to offer wireless broadband.
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FCC Chairman Kevin Martin recently circulated for the second time an order that would deny M2Z’s application to build a 10 MHz national broadband network in the 2155-2175 MHz spectrum band, as well as a petition for forbearance filed by the company (CD Aug 15 p1). M2Z asked for a 15-year license and promised to offer a free network, though below 400 kbps speeds, virtually nationwide in 10 years. In January, the FCC sought comment on M2Z’s proposal and said it would allow other applicants to file applications. M2Z has asked the FCC to reject the alternative applications, saying they lack critical elements offered by M2Z.
One of the main rivals to M2Z, Speedus Corp.-backed NetfreeUS, proposes what it calls a “unique secondary market” plan, under which the company would manage but not operate a network using a public commons approach. Under the plan, NetfreeUS would lease the spectrum to other businesses and even cities to operate as a kind of organized Wi-Fi with free service nationwide. They would recover their investment through limited advertising.
Shant Hovnanian, CEO of Speedus and managing member of NetfreeUS, told us the company’s approach may be more attractive to the FCC than M2Z’s because it wouldn’t put the spectrum in the hands of a single company. “What it boils down to is the FCC doesn’t see a way around auctioning the spectrum if it’s going to go to a one operator type of closed system,” Hovnanian said. “I think the way the wind is blowing, M2Z never happens. That’s the tea leaves that I read. The FCC is saying why should we give a single operator a nationwide license for free. We're auctioning off other slices of spectrum for billions of dollars… That’s not us.”
Hovnanian compared his system to “Wi-Fi on steroids,” not a closed system. “It’s almost identical to Wi-Fi, except that it’s coordinated,” he said. “You're not going to have anyone who is going to have closed networks. You will not have anyone with captive portal pages. It would be a completely open network. You get on and you would ride for free.”
Other contenders for the spectrum said Friday their proposals remain active regardless of what happens to M2Z and whether the commission decides it should auction the spectrum.
“Our client did file an application and we made it clear that we'd like to see the FCC license this through some sort of normal licensing process, where entities like our client are allowed to apply and compete,” said Joe Edge, attorney for Open Range. “It appears that’s what’s going to happen.”
“Commnet timely filed its application, and the FCC is prohibited under the Communications Act from granting the M2Z application unless and until M2Z were to prevail as the winning bidder in an auction against Commnet,” said David Kaufman, an attorney for the company. “Commnet looks forward to participating in and prevailing in any such auction.”
Meanwhile, M2Z said 50,000 Americans signed a petition in support of the company’s pending license application. “As the FCC evaluates whether M2Z’s application is in the public interest, one thing is clear: the public is interested,” said Kathleen Wallman with the Coalition for Free Broadband Now and a senior adviser to the company.