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FCC proposes public Wi-Fi networks across U.S.

Consumers could use the powerful, vast system to make calls and surf the Internet, an idea that quickly drew the wrath of the wireless industry.

Published: Feb. 4, 2013 at 11:00 p.m. PST
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WASHINGTON — The proposal from the Federal Communications Commission has rattled Verizon, AT&T and its competitors, which have launched a fierce lobbying effort to persuade policymakers to reconsider the idea. That has been countered by an equally intense campaign from Google, Microsoft and other tech giants who say a free-for-all Wi-Fi service would spark an explosion of innovations and devices that would benefit most Americans, especially the poor.

The airwaves that FCC officials want to hand over to the public would be much more powerful than existing Wi-Fi networks. They could penetrate thick concrete walls and travel over hills and around trees. If all goes as planned, free access to the Web would be available in just about every metropolitan area and many rural areas.

The new Wi-Fi networks would also have much farther reach, allowing for a driverless car to communicate to another vehicle a mile away or a patient’s heart monitor to connect to a hospital on the other side of town.

If approved by the FCC, the free networks would still take several years to set up. And, with no one actively managing them, connections could become jammed in major cities. But public Wi-Fi could allow many consumers to make free calls from their mobile phones via the Internet. The frugal-minded could even use the service in their homes, allowing them to cut off expensive Internet bills.

“For a casual user of the Web, perhaps this could replace carrier service,” said Jeffrey Silva, an analyst at the Medley Global Advisors research firm. “Because it is more plentiful and there is no price tag, it could have a real appeal to some people.”

Designed by FCC Chairman Julius Genachowski, the plan would be a global first. When the U.S. government made a limited amount of unlicensed airwaves available in 1985, an unexpected explosion in innovation followed. Baby monitors, garage door openers and wireless stage microphones were created.

Millions of homes now run their own wireless networks, connecting tablets, game consoles, kitchen appliances and security systems to the Internet.

“Freeing up unlicensed spectrum is a vibrantly free-market approach that offers low barriers to entry to innovators developing the technologies of the future and benefits consumers,” Genachowski said in an email.

Some companies and local cities are already moving in this direction. Google is providing free Wi-Fi to the public in the Chelsea neighborhood of Manhattan and parts of Silicon Valley.

Cities support the idea because the networks would lower costs for schools and businesses or help vacationers easily find tourist spots and restaurants. Consumer advocates note the benefits to the poor, who often cannot afford expensive cellphone and Internet bills.

The proposal would require local television stations and other broadcasters to sell a chunk of airwaves to the government that would be used for the public Wi-Fi networks. It is not clear whether these companies would be willing to do so.

The FCC’s plan is part of a broader strategy to repurpose entire swaths of the nation’s airwaves to accomplish a number of goals, including bolstering cellular networks and creating a dedicated channel for emergency responders.

Some Republican lawmakers have criticized Genachowski for his idea of creating free Wi-Fi networks, noting that an auction of the airwaves would raise billions for the U.S. Treasury.

That sentiment echoes arguments made by wireless companies that rely on cellphone contracts to keep their businesses strong. AT&T, T-Mobile, Verizon Wireless, Intel and Qualcomm wrote in a letter to FCC staffers late last month that the government should focus its attention on selling the airwaves to businesses.

Some of these companies also cautioned that a free Wi-Fi service could interfere with existing cellular networks and television broadcasts.

Intel, whose chips are used in many of the devices that operate on cellular networks, fears that the new Wi-Fi service would overcrowd the airwaves.

“We think that the spectrum would be most useful to the larger society and to broadband deployment if it were licensed,” said Peter Pitsch, the executive director of communications for Intel.

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