A Silicon Valley company has asked the U.S. government to give it a band of radio spectrum for a free high-speed wireless Internet network that would cover most of the United States and be supported by advertising.

The idea is to create something like an Internet version of broadcast television, using local and national sponsors to pay for what its promoters say would be nearly ubiquitous high-speed access.

The company, M2Z Networks, is backed by several prominent Silicon Valley venture capitalists. It is making a case that its plan could hasten the spread of broadband Internet use and lead to lower prices by spurring competition with the cable and telephone giants that dominate the Internet market.

But the idea’s success depends entirely on something that its backers cannot control and that some telecommunications analysts say they are unlikely to get: cooperation from the Federal Communications Commission.

In its filing with the agency, M2Z said that the spectrum it sought was not scheduled for auction and could wind up going to waste because it might not be easily used for other functions, like transmitting cellphone calls.

But the spectrum would be enough to deliver the company’s proposed free Internet access at 384 kilobits a second, about six times the speed of dial-up, said Bruce Sachs, a partner with the venture capital firm Charles River Ventures. Sachs said his firm was one of three that backed M2Z in January with a round of financing. He did not disclose the amount raised.

Backers have apparently committed $400 million to the project — if approval is forthcoming from the FCC. Projected total cost for the 10-year project is $1 billion.



  1. Anthony says:

    If high bandwidth locations (ie schools, and other potential Goverment funded buildings) were allowed to use it I would think $1 billion would overall actually be a savings.

    And it wouldn’t take 10 years for these locations to save that $1 billion. It would be logical for the Goverment to fund this.

    Think about it. Remove $1 billion from school funding, and in the end save the schools (overall) much more.

  2. DavidtheDuke says:

    If you’d think the NSA has a good excuse to watch us via AT&T, you won’t have seen nothin’ yet!

  3. gquaglia says:

    I can already see the hords of telcom lobbists heading to DC to squash this silly idea. Free internet for all, hogwash…

  4. AB CD says:

    I doubt this will happen. The FCC would have to sell things without a bid which is unlikely. If it was put up for bid, the telcos might just outbid them to keep them out.

  5. axe says:

    The FCC and the internet. Isn’t that like vinegar and baking soda?

  6. ECA says:

    Its interesting that I had a slightly different idea…
    TAKE the Cellphone companies, and place a WIRELESS backbone, accross the whole nation.
    The Telco’s are having fits already..
    Screw the Telco’s, and go wireless like Japan and others have done.
    Its already UP, they just need to add the ISP factor to the current Cellphone antennas.

    The internet has LOTS of problems, useing the telco’s.
    It dont INTERCONNET real well… Its like 4 major companies that TOUCH each other only in a few places. Sending email and data, does not go in a straight line, and MANY locals have substandard systems(esp. rural areas).

  7. Awake says:

    It will never happen, because existing big business has massaged a lot of political careers, and are a regular and continuing source of contributions.
    What we have in most areas these days is a monopoly of high speed Internet service providers. There may be a couple of options available (Cable -vs- DSL) but they both know that dropping prices and improving service could start a real competition for customers, resulting in further lowered prices and higher service expectations, in the end damaging their own companies by increasing costs, lowering prices, and giving choices, so they implicitly conspire to keep prices at a certain level and service at a certain standard.
    Breaking these monopolies would be fantastic for America, because if companies were actually forced to compete, service would improve and prices would drop.
    We have a two party political system, both of them beholden to big business. The question on our minds should be which party is more likely to look at our benefit over big business benefit, and place that party in power in order for things like ‘Advertiser sustained free wireless’ to take have a hope of taking place.
    When we have big oil companies setting energy policies, Telcos setting FCC policies, Medical Drug companies setting health policies, we have no hope as individuals for improvements that make our needs the primary focus.
    Open this up for bidding.. fine… but do it, and ignore any complaints from big business. If the little guys can do it and make a profit, so should the big guys… that is the essence of capitalism, not this perverted and utterly corrupt system of government under which we live now.

  8. James Hill says:

    ECA, just one problem…

    …the cell phone companies are, for the most part, owned by the land line companies.

  9. ECA says:

    8,
    GOOD words…
    WE are 4th(? or less) in the world of HIGHSPEED access and price.
    Europe has SOME great setups and at 1/2 the price WE GET.
    A friend in Britain, gets 3MBPS, for $12.99(about $26US)….I pay $50 for 1.5MBPS..DUH..
    In tech LEVEL, I THINK we are 12th in the world, behind, CHINA, JAPAN, Indonesia, Taiwan and others… ARNT the companies SUPPOSED to help this nation PROSPER??? Or are THEY(other nations) BETTER then US/we… THEY compete with each other, and the USA does NOT..

  10. catbeller says:

    Free internet, HELL. This idea turns the wireless internet into a commercially-driven TV network. Advertisers will control the ultimate spigot. Not good.

    How about this: the FCC allocates the spectrum to anyone who wants to build wireless mesh nodes, as long as they are not advertiser-driven. Then it gets out of the way. Running a wireless mesh node is not expensive; we don’t need advertising agencies dictating content.

  11. Jon says:

    Interesting the photo shows the WWII cryptographic intercept center at Bletchley Park!

  12. Ben Franske says:

    I would support this if the FCC gave them a limited term licence and did not just give them the spectrum perpetually.

  13. darden says:

    As much as I like this idea I wonder if Skype would remove the telecom industry from the scorched earth? It boggles the mind.

  14. ECA says:

    9,
    That is RIGHT…and if they created THEIR OWN backbones…..THEY would not be.
    It would need to be at LEAST 4….
    2, 1 accross the south and 1 on the North.
    THEN, 2 more connecting theEAST and and one at the west..and ten 1 in the middle would be ALL that was needed…
    From there for to relays..

  15. Eideard says:

    Not hard to acquire from the FCC. Just change the name of the company to Halliburton 2.

  16. david says:

    Never going to happen. When something is free, people take more than they need. There has to a be a controlling factor. Money is the best control.

  17. ECA says:

    17,
    there dont need to be a control…
    ONLY control you want, is FREE, and NO ADVERTs…Make it so everyone can have it, and then USE it, to replace the OLD phone systems. charging for phones and NO long distance, would free up the WIRE services.

  18. Bruce IV says:

    ECA (re 18) … once the wires are freed, what are you going to use them for, if not phone service?


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