M2Z seeks legal action against FCC

M2Z Networks Inc. said it will take the Federal Communications Commission to court to force the agency to consider its request for 25 megahertz of vacant spectrum.
The Silicon Valley-based outfit applied for the spectrum more than a year ago, vowing to deliver free broadband service to 95% of Americans within 10 years. The company said it will seek a court order directing the FCC to come into immediate compliance with Section 7 of the Telecommunications Act, which mandates the “commission shall determine whether any new technology or service proposed in a petition or application is in the public interest within one year after such petition or application is filed.”
Executives from M2Z, which was founded by former FCC Wireless Bureau chief John Muleta, said they were informed last week that the FCC would deny the application.
“M2Z has been very patient on behalf of the millions of Americans who would benefit from our proposed service,” said Milo Medin, M2Z’s chairman. “It took the FCC nine months to seek comment on our application, which is as long as it took the commission to decide the largest telecommunications merger in history, the BellSouth/AT&T merger. Not only is it the law, but it is common sense to give license applications that increase competition at least the same treatment as license-transfer applications for mega-mergers that lessen competition.”
M2Z is backed by several Silicon Valley venture capital firms, and is looking to offer access to its network on a wholesale basis much like Google Inc. and other Internet companies had hoped to do with 700 MHz of spectrum up for auction next year. But like Google’s efforts, M2Z’s request is being opposed by AT&T Mobility, Verizon Wireless and other incumbent carriers.
The company said it will seek a Writ of Mandamus from the U.S. Court of Appeals for the D.C. Circuit.