A report published late last week by the Federal Communications Commission (FCC), the US regulator, has given the go-ahead for the creation of a free mobile Internet network in the 2155 to 2180 MHz spectrum band, ruling that the network would not interfere with existing services in the airwaves. The decision means the regulator will be able to auction the spectrum in early-to-mid 2009, reports the Wall Street Journal (WSJ), and is deemed a blow to US operators such as T-Mobile, which have opposed opening up the so-called ‘white space’ spectrum. “This report confirms that we’re able to move forward with broadband services as proposed by [FCC chairman Kevin] Martin without causing harmful interference to license users of adjacent spectrum,” said an FCC spokesman. According to the WSJ, FCC engineers said recent tests in Seattle showed the airwaves could be used for mobile service “without a significant risk of harmful interference” to existing services in the spectrum. T-Mobile USA paid US$4.2 billion in 2006 to acquire spectrum in an adjacent band and had raised concerns that the network would disrupt its services.

The regulator will reportedly auction 25 MHz of spectrum to a bidder that agrees to build-out a nationwide network that will be free to access. Under the current proposals, the winning bidder would have to build-out the system to serve half of the US population within four years, rising to 95 percent within ten years. According to the WSJ, one such company in the frame is M2Z Networks, a start-up that originally floated the free mobile Internet idea two years ago. M2Z has said it could fund network build-out via advertising and include a subscription-based plan for consumers willing to pay more for a faster service.