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July 19, 2008

Motorola, T-Mobile USA and AT and T met with the FCC Thursday to ask it to reconsider a spectrum auction in which the winning bidders would have to offer free Internet access.

In June, the FCC had proposed that companies that acquire the spectrum should devote at least 25 percent of it to free Internet access for 95 percent of the U.S.

Overall, the wireless carriers expressed concern that the free Internet model could hurt companies that want their products to be used internationally.

T-Mobile’s devices reportedly operate on airwaves next to those that the FCC wants to put up for auction. According to T-Mobile, activity on that band will interfere with its own wireless Internet services.

The wireless operator is asking the FCC for time so the industry can do some testing.

On July 10, Martin said that the sale could be postponed until 2009.

John Muleta, who heads up M2Z Networks, said opponents don't want more competition and are merely seeking additional delays.

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Source: The FCC.