US Federal Communication Commission Chairman Kevin Martin said he still wants to auction a block of radio spectrum with the conditions that the winner offers free Internet. Martin was testifying on Tuesday at a hearing before the House Energy and Commerce Telecommunications Subcommittee.

However, Rep. Cliff Stearns (R. FL), whose career has long been funded by the AT&T PAC money, asked Martin to postpone the plan. Stearns took Martin to task because the Block D auction earlier this year didn't have a winning bidder. There was a stipulation which required the winner to work with police and firefighters to provide spectrum for their emergency dispatching communications.

Martin bowed to Stearns' request and removed his plan from Thursday's FCC meeting to auction 25 MHz of spectrum to a single bidder, who would then use the spectrum to build a nationwide network, about 25 percent of which would be dedicated to the broadband service. The unused wireless spectrum is between 2,155 MHz and 2,180 MHz.

Martin offered his opinion that traditional industry players opposed his idea of free Internet because they wanted that spectrum for mobile video services.

Stearns said, “You are once again considering conditions largely tailored to one business model. We don't think this is necessarily appropriate. It sets up winners and losers.”

A supporter of Chairman Martin's proposal spoke up at the hearing. Rep Anna Eshoo (R, CA) said she thought AT&T and Verizon Communications dominated the 700 MHz Block C auction to the detriment of smaller carriers. She said further, “I think that what it points out is that we need competition.”

In April, Eshoo introduced the Wireless Internet Nationwide Families Act (WIN), which would require the FCC to auction off the same segment of unused wireless spectrum in order to offer a free broadband service. The WIN Act mandates that the winner of the auction would be required to build and complete a network within 10 years that must provide coverage to at least 95 percent of the nation. The licensee would also be required to provide service for free to consumers and public safety users. The WIN Act also requires the licensee to deny access to obscene and indecent material on the free service tier.

Eshoo’s initiative is similar to one put forth by M2Z Networks, which also proposed a free, nationwide service on the same band of spectrum. The FCC denied M2Z Network’s proposal. X