The FCC has signaled that it will move forward with plans to auction off wireless spectrum to build a free wireless Internet after refuting T-Mobile’s claim that the network would interfere with its operations. Is T-Mobile worried about interference from the network or the free competition to its wireless data services?

The proposal to create a network offering free wireless Internet access was originally proposed to the FCC in 2006 by M2Z Networks. The plan has been championed by both FCC Chairman Kevin Martin, pictured above, and Google Founder Larry Page.

The plan hit a roadblock in recent months due to complaints from wireless provider T-Mobile which owns the portion of the spectrum adjacent to the frequency that the FCC plans to use for this project. T-Mobile, a U.S. division of of Deutsche Telekom AG, asserts that the free wireless network would create interference on its paid mobile data network.

The FCC concluded tests on Friday to see if devices on the free wireless network would create interference with T-Mobile’s paid mobile data services. The tests concluded that the free wireless Internet plan would not significantly interfere with neighboring frequencies if the transmitting power of devices on the network is managed correctly.

While the FCC is not likely to give away this portion of the spectrum, worth billions of dollars, to a company to create ad-supported wireless service, it has signaled interest in auctioning off the bandwidth in support of the plan. As it stands, the plan would require aggressive investment on behalf of the winner to reach 50% of the U.S. population in four years and 95% within a decade.

The proposed wireless network would be in direct competition with mobile Internet access plans offered by carriers such as T-Mobile. These companies stand to lose a substantial amount of revenue if a free alternative is introduced.

Related:

Entry was posted on Monday, October 13th, 2008 at 8:57 am under Internet.

Read more entries by Dave Jeyes.
Stumble It!