Hosted Communications

The Federal Communications Commission (FCC (News - Alert)) is auctioning the unused 25 Mhz wireless spectrum with a precondition that the winner of the bid must provide free internet access and should also filter out obscene content from it.

 

"We're hoping there will be increased interest in the proposal; and because this will provide wireless broadband services to more Americans, it is certainly something we want to see," said FCC spokesman Rob Kenny.  

 

The FCC is an independent U.S. government agency, directly responsible to Congress, and is charged with regulating interstate and international communications by radio, television, wire, satellite and cable.

 

This family friendly web service was first proposed by FCC Chairman Kevin Martin and under that the winner would be allowed to use the rest of the airwaves for commercial services.

 

"I think there are a number of features of the plan that would be attractive to various constituencies," said Stifel Nicolaus (News - Alert) Analyst Blair Levin. There are a lot of criticisms on the government for not providing any initiative for getting more Americans internet access and this would be the first step to answer those and also satisfy the anti-obscenity watchdog groups.

 

The proposal is getting a lukewarm response from existing wireless carriers such the industry's chief trade group, called CTIA (News - Alert) who maintains that the auction provisions such as the free-service requirement were too rigid. "CTIA supports flexible auction rules that allow any and all entities to participate," the group said in a statement.

 

Martin’s plan will be taken into consulting on FCC's next meeting on June 12. It is argued that the proposal if implemented would provide internet access to 50 percent of the U.S. population within four years and 95 percent within 10 years.

 

Martin's proposal is similar to a plan put forth previously by a start-up company called M2Z (News - Alert). Under that plan, which was not approved by the FCC, M2Z would have been given the spectrum at no up-front cost. It would have provided free service, generating revenue partly through advertising.

 

The 25 MHz spectrum at issue is not viewed as highly attractive to wireless carriers, unlike the 700 MHz spectrum auctioned by the FCC earlier this year. There has been little previous interest in it, aside from the M2Z proposal.

Nathesh is a TMCnet Contributing Editor.