Free Broadband for the Masses

News Analysis - BusinessWeek By Steve Rosenbush Backed by VC cash, a former FCC official's startup is out to provide no-fee, ad-supported wireless service There's little debate whether the U.S. is a laggard in high-speed Internet access. About 40% of U.S. households surf the Net over so-called broadband connections. That's about half the rate in Korea and Japan. And it's significantly behind many countries in Europe. Harder to settle is what needs to be done. Enter John Muleta, a senior U.S. communications official under both Presidents Bill Clinton and George W. Bush. Muleta, former head of the wireless bureau at the Federal Communications Commission, wants to offer free wireless broadband to consumers across the U.S. So he has launched a new company called M2Z Networks, which has raised an undisclosed amount of money from three major venture-capital firms, including Kleiner Perkins Caufield & Byers, Charles River Ventures, and Redpoint Ventures. M2Z aims provide a basic advertiser-supported service at no cost to consumers. It would charge fees for premium services, such as faster connection speeds. "The model here is broadcast TV," said Muleta, referring to free over-the-air TV, which is supported by ad revenue... http://www.businessweek.com/print/technology/content/may2006/tc20060522_430352.htm - FCC Accepts MTZ Application