When you first hear about the deal being offered to the FCC by a company called M2Z Networks, you can?t help but be skeptical.
The company is offering to provide free ad-supported 512kbps wireless broadband for everyone in the United States. There would also be a higher speed, premium service available. They would like to use some of the 2155-2175MHz spectrum which is about to be auctioned off.
In exchange for the spectrum, the FCC would receive 5% of gross revenues from M2Z. It seems like a bit of a hare-brained scheme which doesn?t stand a chance of acceptance. At least it does until you hear that one of the founders of M2Z Networks is John Muleta. He was formerly head of FCC wireless operations. In other words, the proposition stands a much better chance of acceptance if Muleta believes that making the offer is worthwhile. M2Z reportedly has access to $400 million in capital to back up their plan.