FCC shoots down M2Z, explores 2155-2175 MHz options

The Federal Communications Commission officially dismissed wireless broadband applications of M2Z Networks Inc. and others, concluding the public interest would be best served by initiating a rulemaking on how to move idle frequencies in the 2155-2175 MHz band into the market.
“Each of these proposals has merit, and consideration of either would be inappropriately foreclosed by granting forbearance in this instance. We plan to issue this Notice of Proposed Rulemaking shortly to address these issues and adopt flexible rules that will encourage the innovative use of this unique piece of spectrum,” said FCC Chairman Kevin Martin in a statement.
M2Z argued its plan to offer free, nationwide wireless broadband access-complete with obscenity filtering, an open platform and a license repayment plan-deserved special treatment as a new service. But the cellphone and wireless broadband sectors and others opposed M2Z securing valuable spectrum not subject to a competitive spectrum auction.
The FCC rejected M2Z’s claim it was proposing a new service or technology eligible for special treatment under the law, noting that starting data speeds would have been relatively slow and that other applicants claimed innovative breakthroughs as well.
Commissioner Jonathan Adelstein-one of two Democrats on the five-member, GOP-controlled FCC-questioned the FCC’s legal analysis, a posture that could prove key in M2Z’s anticipated legal challenge. Adelstein also criticized the agency for dragging its feet on addressing licensing rules for the 2155-2175 MHz band.
“I’m disappointed that despite the aggressive interest in and availability of this spectrum, the commission is only now expressing its intent to seek comment on service rules for this band. I am also concerned that we have not considered more seriously M2Z’s proposal as offering a new technology or service under Section 7 of the Communications Act,” said Adelstein in a concurring statement. “The directive under Section 7 is clear. That is the commission should be encouraging the development of new technologies and services for the benefit of consumers. Our job at the FCC is to do whatever we can to promote spectrum-based opportunities and I am not convinced that we have done so adequately here. We must continually evaluate whether our actions, or lack of action, undercut the ability of wireless innovators to get access to new or unused spectrum.”
Both Adelstein and his Democratic colleague Commissioner Michael Copps urged the FCC to move swiftly on a rulemaking for the 2155-2175 MHz band.
“To the extent the commission will initiate a rulemaking, M2Z will participate and review the dismissal order to understand remedies under the law,” said John Muleta, co-founder of M2Z and a former head of FCC wireless policy. “We don’t think Americans should be denied nationwide, family-friendly broadband.”
M2Z, whose May 2006 proposal attracted significant grassroots support around the country, last month threatened the FCC with legal action to force the agency to act on its application.