The proposition to extend free broadband internet service at a speed of 768 kbps downlink to everyone nationwide is getting one step closer to fruition. An FCC approval released this morning boosts this plan that should stimulate the economy and help us all stay connected.

The Free Wireless Web plan will allow the FCC to auction off wavelengths to buyers that promise to offer free Broadband wireless Internet. While this is bad news for mobile companies, such as AT&T and T-Mobile, that have been profiting from paid wireless service on the airwaves adjacent to those that will be auctioned off for free use, it is great news for the 50% of U.S. citizens that do not currently have Broadband access and for the economy: “According to the Congressional Research Service, Broadband Internet Access and the Digital Divide: Federal Assistance Programs at 4-5 (Jan. 25, 2008) (”CRS Report”), ubiquitous broadband adoption “would result in a cumulative increase in gross domestic product of $179.7 billion, while sustaining an additional 61,000 jobs per year over the next nineteen years” - a total of 1.2 million additional jobs in a single generation. According to a Connected Nation study, The Economic Impact of Stimulating Broadband Nationally (February 21, 2008), a small 7% increase in broadband adoption in the U.S. would lead to a massive $134 billion per year in total direct economic impact.”(WSJ MarketWatch)

More from the Wall Street Journal:

‘T-Mobile USA bought its spectrum for about $4 billion a few years ago. T-Mobile has fought FCC Chairman Kevin Martin’s proposal to encourage development of free Web access by raising concerns that the service would disrupt the company’s 3G wireless network, for which it charges customers. But FCC engineers said recent tests in Seattle showed the airwaves could be used for a wireless broadband service “without a significant risk of harmful interference.” This report confirms that we’re able to move forward with broadband services as proposed by Chairman Martin without causing harmful interference to license users of adjacent spectrum,” said an FCC spokesman.’

While T-Mobile clings to its criticisms of the move, another company, M2Z - the company that devised the plan for free web several years ago - is happy, as lawmakers and rival wireless companies argue M2Z is favored in the deal. M2Z backed their pitch for an airwave handout with a plan to raise money to pay back the airwave purchase with advertising and the sale of high-speed subscriptions to customers demanding faster service.

Since an AW-3 airwave handout seemed a bit risky, the FCC put some requirements on the deal. The network would, of course, have to agree to set aside a percentage of the airwaves for free use, and the network would also be required to reach 50% of the U.S. population in four years and 95% within a decade.

Talking Points on the Economics Benefits of the Free Web Plan:

• Prices for broadband in the U.S. are among the highest in the world (the U.S. ranks 24th in the world, just behind Estonia).

• Most of the 114 million adults in the U.S. who either lack Internet access altogether or rely on dialup connections come from low-income households, or live in rural or inner-city settings where existing providers refuse to serve.

• The “broadband divide” is greater for students from households that make less than $20,000 a year, who are much less likely to have Internet access.

• Only 35% of small and independent businesses have company websites and only 59% use the Internet for business related activities.

del.icio.us   digg

Tags: FCC, Free Broadband, Free Internet, Free Nationwide Internet, M2Z, M2Z Networks Inc, Nationwide Broadband

This entry was posted on Tuesday, October 14th, 2008 at 9:40 am and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.