Bush opposes free wireless internet plan

The current Wi-Fi auction plan is under attack for being anti-competitive

The Bush administration has made clear its opposition to setting up a free wireless internet service for US citizens.

In a letter to the chairman of the Federal Communications Commission (FCC), Secretary of Commerce Carlos Gutierrez laid out the administration’s position that the current spectrum auction plan, which would make the winner responsible for setting up nationwide internet access, is anti-competitive.

“The history of FCC spectrum auctions has shown that the potential for problems increases in instances where licensing is overly prescriptive or designed around unproven business models,” Gutierrez wrote, in a letter he describes as representing the Bush Administration's views.

“In contrast, open and highly competitive auction processes have supported both greatly expanded broadband services and the taxpayers' interests in spectrum licence allocation. Moreover, a government-mandated free nationwide network is not the most effective or efficient way to assist underserved areas. "

Under the current plan, in exchange for a large chunk of spectrum the winner would be expected to provide a base level of free broadband for all, with faster connections available at a price. The free service would not be allowed to carry pornography, but would open up the internet to those who cannot currently access it.

“The Administration believes that the AWS-3 spectrum should be auctioned without price or product mandates,” Gutierrez said.

“The FCC should rely on market forces to determine the best use of spectrum, subject to appropriate government rules to prevent harmful interference. I look forward to a decision that is consistent with the policies and principles that are best suited to bring innovative and affordable broadband services to the American people.”