A New Model for Broadband Internet Access Proposed in the US

In response to the upcoming exceptional sale of radio spectrum this summer by the US Government called "Auction 66", M2Z Networks Inc (M2Z) has made an interesting proposal to the US Federal Communications Commission. M2Z is proposing a revenue model in which users can gain high-speed, advertising-subsidized Internet service, or pay a monthly fee for premium access. John Muleta, co-founder of M2Z and a previous senior communications official under both Presidents Clinton and George W Bush, believes that this idea is akin to "broadcast TV", referring to free over-the-air television, which is supported by ad revenue, as opposed to the prevalent "fee-for-service" model used by most ISPs. M2Z proposes to pay 5% of its gross revenues to the US Government, in exchange for a 15-year license to use the 2155 - 2175 Mhz band. M2Z plans to deploy WiMAX technology reaching one-third of the US population within three years, two-thirds within five years and most of the US population within 10 years. According to M2Z, the spectrum it sought was not up for auction and could end up going to waste because it might not be easily used for other functions. The proposal comes as several North American towns and cities, including San Francisco, Toronto, Fredericton, NB and Philadelphia, are working with companies to build local Wi-Fi networks to provide free or subsidized Internet access. For a news article in The New York Times, see: http://makeashorterlink.com/?Y16A2383D For an article on Toronto Hydro's planned foray into a wi-fi network in the context of other North American efforts, see: http://makeashorterlink.com/?F27A6283D Summary by: Oren Weichenberg