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FCC Technology Report Clears the Path for Nationwide Lifeline Broadband Service
Tuesday, October 14, 2008
Final Hurdle Passed for Free Wireless Broadband Proposal That Closes the Broadband Divide and Provides a Boost to the U.S. Economy
WASHINGTON, Oct. 14 /PRNewswire/ -- M2Z Networks, Inc. ("M2Z") today
called on the Federal Communications Commission ("FCC") to move forward and
adopt the service rules for a nationwide wireless broadband network that will
provide all Americans with a lifeline broadband service at 768 kbps downlink
speed for free. On October 11, the FCC's Office of Engineering and Technology
released a technical report that concluded that two-way broadband service in
the "AWS-3" spectrum will not cause harmful interference to wireless services
of other carriers, including Germany's T-Mobile and AT&T, two of the world's
largest monopoly phone companies and the most vocal opponents to the FCC's
Lifeline Broadband proposal. The FCC originally was slated to complete this
proceeding this past June ahead of its promise to Congress to issue final
rules by August 11, 2008 but delayed the proceeding due to the demands by
T-Mobile, AT&T and other incumbent wireless companies for the FCC to conduct
interference analysis.
Friday's FCC's report and its findings are consistent with the FCC's
previous findings in the 700 MHz band and the 2.5 GHz band that are designated
for wireless broadband services. The FCC's report is also consistent with the
findings of other progressive international regulators such as the United
Kingdom's Ofcom who issued a similar finding earlier this year. As a result
of this report, the FCC's proposal for a free "lifeline" broadband service has
passed the final hurdle and can now become the cornerstone of comprehensive
U.S. national broadband strategy as well as a privately financed way of
addressing the intractable broadband gap in the U.S. where nearly 50% of
households do not have access to broadband.
"These technical findings support the use of this long fallow spectrum for
broadband and puts to rest the false technical arguments that were thrown in
at the last minute in order to thwart competition," said John Muleta, CEO and
founder of M2Z Networks. "All of the policy and technical benchmarks have now
been met and all that is needed is an affirmative vote by the FCC
Commissioners so that this spectrum can be auctioned and be put into
productive use as quickly as possible. The need for more affordable broadband
is clear and the time to act is now. American consumers and the public
interest should not be held hostage another month or even another day to phone
company lobbyists that are now calling for even more delay."
The FCC's pending AWS-3 rules would require the auction winner of spectrum
to provide free lifeline wireless broadband to 50% of the population in four
years and 95 percent of the U.S. within 10 years. The economic benefits of
putting in place a nationwide lifeline broadband program are significant.
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. Given the
current economic crisis, the need for affordable and widely available
broadband to stimulate the economy could not be greater:
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.
About M2Z Networks:
Founded in 2005 and headquartered in Menlo Park, Calif., M2Z Networks'
goal is to transform the current state of the broadband marketplace by
building a new high-speed wireless network throughout the U.S. The FCC
recently has drafted proposed rules that would require a spectrum auction for
a slice of fallow spectrum in which the licensee would have to guarantee the
delivery of free, fast and family-friendly wireless broadband service to at
least 95 percent of Americans within a 10-year timeframe. M2Z expects to bid
on this spectrum. M2Z is backed by Kleiner, Perkins, Caufield and Byers;
Charles River Ventures; and Redpoint Ventures; three of the most successful
venture capital firms in Silicon Valley with $5 billion of capital under
management. For more information, please visit www.M2Znetworks.com and
www.FreeBroadbandNow.org.
SOURCE M2Z Networks, Inc.
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