The rumor mill is spinning with speculations regarding the intentions of M2Z Networks; the start-up founded by former chief technology officer of the ill-fated @Home Networks Milo Medin and John Muleta, former chief of the wireless telecommunications bureau for the F.C.C. The two have been in talks with the Federal Communications Commission to obtain a block of spectrum specifically to offer free wireless service to the public.
Initially, M2Z requested the frequency spectrum to be given to them outright, giving the F.C.C.the idea to auction the frequency off to the highest bidder-with the requirement that the winner uses it to offer free wireless broadband. M2Z Networks will be attempting to win the bid for their idea and provide wireless internet services to the public free of cost.
And you may be asking yourself at this point how M2Z Networks plans to make any revenue by offering free wireless access to the public. The answer to this is simple, M2Z plans to sell advertising space and offer upgraded faster versions of the service at cost. A potential issue with the auction system is that it puts a lot of upward pressure on consumer prices for wireless services, and gives a potentially unfair advantage the company or companies who win the bid and the rights to the free frequencies.
As all can imagine, there are mounting complaints regarding the implementation of the idea. The F.C.C. has already rejected a complaint from T-Mobile, who argued there would be too much interference with frequencies it owns that are adjacent to the frequency up for bid. It is obvious; however, that T-Mobile and other carriers do not want to have to compete with a company offering free data service, so the complaint was rejected by the F.C.C. It would seem wise to question how we can play the wireless game with rules that benefit all of the players and fans. This information brought to you by Blue Interactive Agency, your integrated interactive marketing firm in Fort Lauderdale, Florida.