M2Z Urges FCC to Vote on Free Broadband Initiative Amidst Bush Administration Efforts to Squash the Measure

Lifeline Broadband Service Would Connect 95% of Americans to the Internet for Free; Delay in FCC Vote Would Violate Communications Act

Washington, DC (December 11, 2008) - In response to a letter of opposition from the Bush administration, M2Z Networks, Inc. ("M2Z") today called on the Federal Communications Commission ("FCC") to move forward with its scheduled December 18, 2008 vote on a plan for a nationwide wireless broadband network that will provide all Americans with free broadband Internet using the AWS-3 spectrum. M2Z is poised to bid on the AWS-3 spectrum and build the nationwide free broadband network if the FCC votes on the 18^th to proceed with the spectrum auction. 

On December 10, Commerce Secretary Carlos Gutierrez, who is also the President's principal adviser on telecommunications and information policy issues, sent a letter to FCC Chairman Kevin Martin expressing opposition to Martin's plan to move forward with the December 18 vote due to "price and product mandates." This is in stark contrast to the Bush administration's goal that was outlined in a 2004 speech. President Bush said, "I'm talking about broadband technology to every corner of our country by the year 2007......" 

Yet, as 2008 draws to a close, more than 100 million Americans, most of whom come from low-income households, or live in rural or inner-city settings where existing providers refuse to serve, are still without broadband Internet access. Any further delay from the FCC on this matter would result in the violation of a self-imposed Congressional deadline and would constitute a violation of the Communications Act.

"The Bush administration is marked by years of failed policy initiatives that benefit corporate interests, and this is just another example. Given the current economic crisis, the need for affordable and widely available broadband to stimulate the economy and bridge the digital divide could not be greater," 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. America's consumers have waited long enough and Chairman Martin deserves credit for pushing this innovative plan that will provide more access, create jobs and stimulate the economy.  The Administration should support this plan, not fight it."

While President-Elect Barack Obama has not commented specifically on the AWS-3 auction, he has pledged 100 percent broadband availability as part of his massive public works campaign announced during his weekly address on December 7. Said Obama, "It is unacceptable that the United States ranks 15th in the world in broadband adoption. Here in the country that invented the Internet, every child should have the chance to get online and they'll get that chance when I'm President."

The FCC's pending AWS-3 rules would require the auction winner of spectrum to provide free lifeline wireless broadband to 50 percent of the population in four years and 95 percent of the U.S. within 10 years.  The economic benefits of putting in place a free nationwide 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 seven percent increase in broadband adoption in the U.S. would lead to a massive $134 billion per year in total direct economic impact. 

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.

Beth Monaghan
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InkHouse
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