M2Z Gets Tough With FCC On Nationwide Broadband Filing

Telecom Policy Report, August 20, 2007

M2Z Networks Inc. has told the Federal Communications Commission it plans to seek a Writ of Mandamus from the U.S. Court of Appeals for the D.C. Circuit, asking the court to direct the FCC to come into immediate compliance with all parts of Section 7 of the Telecommunications Act by making a public interest determination on M2Z's license application, which has been pending for more than 15 months (TelecomWeb news break, April 26).

The FCC was statutorily required to make a public interest determination on M2Z's license application by May 5. To date, the company says, this has not occurred. A review of the M2Z docket shows that opposition to M2Z's license and innovative use of wireless technology comes from a handful of incumbent carriers and spectrum speculators like AT&T, Verizon, and NextWave that want only to prevent competition and new market entry. A review of the record also shows that these parties have not met the high burden required by Section 7 to demonstrate that it is not in the public interest to grant M2Z's license application.

"We strongly believe that the FCC should fully and fairly review the detailed record associated with M2Z's license application and its forbearance petition, and make a decision consistent with the law Congress enacted," says Uzoma Onyeije, vice president/regulatory affairs for M2Z. "The statute is clear concerning both process and substance for Section 7 decisions. As an independent agency accountable only to Congress, the FCC's highest priority is implementing the will of the legislature."

Section 7 of the Telecommunications Act states that "[t]he Commission shall determine whether any new technology or service proposed in a petition or application is in the public interest within one year after such petition or application is filed." The statute also requires that parties who oppose a new technology or service "shall have the burden to demonstrate that such proposal is inconsistent with the public interest."

Founded in 2005 and headquartered in Menlo Park, Calif., M2Z's goal is to transform the current state of the broadband marketplace by building a new high- speed wireless broadband network throughout the United States. In May 2006, the company submitted a license application to the FCC to construct and operate a nationwide wireless broadband network in the 2155 MHz-2175 MHz spectrum band. Approval of the application would guarantee delivery of free, fast and family- friendly wireless broadband service to at least 95 percent of Americans within a 10-year timeframe. M2Z is backed by Kleiner, Perkins, Caufield and Byers; Charles River Ventures; and Redpoint Ventures, three successful venture capital firms in Silicon Valley with a total of $5 billion of capital under management.

No Response

During the last 15 months, M2Z says it repeatedly called on the FCC to take "timely action" consistent with the law and with the statutory deadline of May 5. "Unfortunately, the opportunity to review and vote on an order concerning the license application was not afforded to the full Commission prior to lapse of the 12-month timeframe," the company said in a statement. "The inability of staff to provide the full Commission with the opportunity to comply with the Telecommunications Act has led to great concern from members of Congress."

As such, Rep. Anna Eshoo (D-Calif.), a member of the House Telecommunications and the Internet Subcommittee and whose district includes a large portion of Silicon Valley, sent a letter to each of the FCC commissioners earlier this summer, inquiring into the FCC's interpretation of and compliance with Section 7 of the Act. In the last year, a bipartisan group of senators and representatives also asked the FCC to comply with all its statutory obligations, including Sections 7 and Section 10, and "to provide a fair and transparent opportunity for M2Z's application and forbearance petition to be considered."

According to M2Z, Americans are "overwhelmingly in favor of granting M2Z's license application." It says there are more than 2,000 comments and letters of support of M2Z's license application in WT Dockets 07-16 and 07-30. To date, "hundreds" of federal, state, and local elected officials from all across the United States, including North Carolina, Virginia, Tennessee, South Dakota, Alaska, Hawaii, California, Mississippi, and Maryland, have indicated their strong support for granting M2Z's license.

Additionally, M2Z says its application has garnered support from advocates on such issues as education, the digital divide, online child and family safety, economic development and national economic competitiveness. These organizations reflect a wide range of perspectives and include the National PTA, One Economy Corporation, the Hispanic Telecommunications and Technology Partnership (HTTP), ACORN, the Minority Media and Telecommunications Council (MMTC), Media Access Project (MAP), Public Knowledge, Family Watch International, Enough is Enough, the Internet Keep Safe Coalition, and many others.