Federal regulators have shot down a proposal by a startup called M2Z Networks Inc. to build a free, nationwide wireless broadband network using a spare slice of airwaves, reports the Associated Press. The Federal Communications Commission on Sept. 1 said it has rejected M2Z’s request that the agency demand that the winner of an auction for the radio spectrum provide free internet service to anyone who connects to it. That condition would have mirrored M2Z’s business model of offering free basic wireless broadband access—with speeds of up to 768 kilobits per second—that would be supported by advertising in addition to a faster, premium service. “We gave careful and thorough consideration to the proposal, but ultimately determined that this was not the best policy outcome,” Ruth Milkman, head of the FCC’s wireless bureau, said in a statement. The FCC did not explain its rejection further. M2Z’s plan had encountered resistance from T-Mobile USA and other big wireless carriers, which warned that it would interfere with their own services…
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