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As the FCC auctions off an unused spectrum of airwaves, the winner may be forced to provide free wireless internet for most of the country. No date or terms for the auction have been set, but the government’s deal requires that free service on the 25 MHz spectrum reaches at least half the in five years and 95 percent within ten years. The agreement, proposed by FCC chairman Kevin Martin, also stipulates that the bidder must filter out obscene content for allowing the winner to use the remaining portion of the spectrum for commercial purposes.

“We’re hoping there will be increased interest in the proposal; and because this will provide wireless broadband services to more Americans, it is certainly something we want to see,” said FCC spokesman Rob Kenny.

CTIA, the principal trade group for wireless companies, is unenthusiastic about the proposal, taking issue with the provision that the service must be free. Prior to this proposal, there has been little interest in this portion of the spectrum, as wireless carriers preferred the 700MHz airwaves auctioned a few months ago.

A startup company called M2Z previously asked to use the airwaves for free, providing free wireless with a content filter and garnering revenue from advertising that would be shared with the government. The FCC turned M2Z down, saying the company needed to bid against other carriers, but Martin’s proposal is very similar. The next step is a June 12th meeting where more details are expected to be hammered out. [Source: AP Business and Yahoo! News]

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