WASHINGTON -(Dow Jones)- Federal Communications Commission Chairman Kevin Martin said Tuesday that he remains committed to selling a block of airwaves with conditions that the winner offer free Internet.
"I think if someone was willing to make that kind of a commitment ... that's a significant public interest benefit that I think the commission should take into account," Martin said at a hearing before the House Energy and Commerce Telecommunications Subcommittee.
Martin was forced to withdraw an item from Thursday's FCC meeting agenda about a planned airwaves auction that would have required the winner to give most Americans free wireless-Internet service within the next few years.
M2Z Networks Inc., a Silicon Valley start-up, proposed a similar plan last year. Critics have accused Martin of tailoring the plan to M2Z.
At the hearing, Rep. Cliff Stearns, R-Fla., asked Martin to postpone the plan. Stearns said placing conditions on airwaves auctions has not been a successful tactic in the past.
The FCC was unable to sell a block of airwaves earlier this year because it would have required the winner to work with police and firefighters on broadcasting public safety alerts.
"You are once again considering conditions largely tailored to one business model," Stearns said. "We don't think this is necessarily appropriate. It sets up winners and losers."
Martin said "traditional industry players" opposed his idea for free Internet because they wanted the airwaves to be reserved for mobile video service. "The traditional industry players are actually wanting them to condition the spectrum conducive to their business model," Martin said.
Rep. Anna Eshoo, D-Calif., applauded Martin for his proposal, noting that Verizon Communications Inc. (NYSE:VZ) (VZ) and AT&T Inc. (NYSE:T) (T) dominated the last airwaves auction. "I think that what it points out is that we need competition," she said.
Martin said he pulled the item from Thursday's FCC agenda because other members of the five-member commission had questions about it. "I would like to move forward with that in July as soon as I can get support from a majority of the commission," Martin said.
- By Fawn Johnson, Dow Jones Newswires; 202-862-9263; fawn.johnson@ dowjones.com
(END) Dow Jones Newswires 06-10-08 1153 Copyright (c) 2008 Dow Jones & Company, Inc.
