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WASHINGTON — The federal government has proposed nationwide Wi-Fi networks that could potentially give people access to the Internet without having to pay a wireless bill, creating a bitter divide between tech giants and the nation's wireless service providers.
The proposal by the Federal Communications Commission has led to a fierce lobbying effort by wireless companies, who see the potential networks as a major threat to the status quo. But tech companies like Google and Microsoft say the idea will foster innovation and growth.
The networks, if the plan comes to fruition, would be much more powerful than existing Wi-Fi networks, able to penetrate concrete walls and travel around obstacles such as hills and trees. This wouldn't automatically mean free Wi-Fi for everyone, but it would be an important step in expanding Wi-Fi coverage. Before becoming available to the public, the networks would have to be built by someone with pretty deep pockets. The FCC itself would not be building the networks.
With the vast array of web applications available to smartphone users, if the networks were built, they would have the potential to completely remake the $178 billion wireless industry, as users could use services such as Skype or Google to make voice calls instead of relying on a wireless provider such as AT&T or Verizon.
"For a casual user of the Web, perhaps this could replace carrier service," Jeffrey Silva, an analyst at the Medley Global Advisors research firm, told the Washington Post, which first reported the story. "Because it is more plentiful and there is no price tag, it could have a real appeal to some people."
The proposal is not new, as The Hill reports. The FCC has been encouraging TV stations to sell off their spectrum — frequencies that carry all wireless signals — since 2010. But the squabble between the FCC, cellular companies and Silicon Valley giants has intensified in recent months, as service providers argue the proposed networks could interfere with the existing cellular structure, leading to problems for those not on the Wi-Fi network. Companies such as Cisco and Intel have warned the government that an unlicensed network could lead to widespread disruption to broadcast and 4G systems.
The FCC has said it does not see merit in those claims, however. "We want our policy to be more end-user-centric and not carrier-centric. That's where there is a difference in opinion" with carriers, an FCC official told the Post anonymously.
