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Jan. 5, 2009

In an unexpected move late yesterday, FCC Chairman Kevin Martin sent his auction proposal for a free national broadband wireless network.

His decision effectively removes the controversial content filtering requirement, Martin said in a conference call with reporters.

And the proposal does apply to a AWS-3 network. Martin's original plan was widely criticized by consumer advocacy groups in the U.S. because of the content filtering requirement.

M2Z, a mobile Wi-MAX hopeful, is the leading supporter of the AWS-3 plan. CEO John Muleta said yesterday that if his company wins the spectrum, then it will still work to keep illegal material from being accessible to children.

Directly related to the proposed auction is a lawsuit filed by M2Z Networks in November. Martin mentioned the lawsuit in yesterday's conference call but didn't elaborate and an FCC spokesperson simply declined to comment.

Oral arguments in the lawsuit begin Jan. 5 in the District of Columbia Court of Appeals.

T-Mobile USA, a leading opponent of the auction plan, previously said it may also file a lawsuit if the auction continues. Its claim is that AWS-3 spectrum, if implemented in the way M2Z proposes, would cause significant intereference against existing AWS-1 networks.

That claim is also supported by AT&T and a number of other wireless operators.

But Martin said he disagrees while M2Z maintains the interference claims are an excuse because incumbent wireless carriers fear the impact of a free nationwide network.

Martin also discussed the transition to digital television scheduled for next month. He said $7 million is put aside for outsourced call center support. The FCC's own call center can handle more than 200,000 calls daily, but some experts predict more than 1 million calls on the day analog networks are switched off, he noted.

Commissioner Jonathan Adelstein also expressed great concern about this. "I'm afraid the DTV transition isn't ready for primetime yet," he said, in a separate conference the same day.

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Source: The FCC.