California Association for Local Economic Development Endorses M2Z Networks' Plan to Build Nationwide Broadband Network.

MENLO PARK, Calif. -- The California Association for Local Economic Development (CALED) today called upon the Federal Communications Commission (FCC) to allow Menlo Park-based M2Z Networks to begin offering its family-friendly wireless nationwide broadband network free to the public.

In a letter to the FCC, CALED chair Paul Saldana emphasized the "Board's enthusiastic support for the type of service proposed by the spectrum license application that M2Z Networks has filed with the Federal Communications Commission to provide affordable wireless broadband Internet access to 95% of the American population, with an emphasis on underserved areas of America."

M2Z's application requests nationwide authorization to operate in 20 MHz of currently underutilized spectrum in the 2155-2175 MHz band over 15 years. In return, M2Z has pledged to serve the public interest by providing:

* Rapid deployment of a network to bring free wireless broadband service to everyone across the nation;

* A family-friendly broadband service that is both safe for America's children and affordable for their parents; and

* A free and interoperable wireless broadband platform available for use by public safety organizations.

Additionally, M2Z has voluntarily pledged to pay for the use of the portion of the public spectrum for which it has applied. M2Z will pay the U.S. Treasury 5 percent of annual gross revenues from a subscription service that would offer wireless-broadband access at even higher speeds.

CALED's letter pointed to efforts underway in many states, including California, to increase affordable broadband access as a means to foster economic development. CALED's letter cited a 2006 report by the U.S. Department of Commerce's Economic Development Administration (EDA), which found that communities where broadband was widely available saw greater employment growth than in those communities without broadband.

"The real question for policy makers is what can be done to facilitate broadband access by a greater portion of our citizens," wrote Mr. Saldana. "In 2004, the United States was ranked 13th in broadband penetration according to the International Telecommunication Union. In that same year, President Bush called for universal, affordable broadband in the country by 2007. Since 1994, our ITU broadband penetration rate has slipped to no better than 15th and the President's goal of ubiquitous, reasonably priced broadband is not yet in view. A new direction is needed. The Commission should support innovative, thoughtful solutions that are capable of meeting the challenge."

The letter praised M2Z's plan for an "innovative, public-private partnership" to "expand broadband access and would help the market for broadband access to work more efficiently, by increasing competition and reducing prices." The letter urged the FCC to "approve M2Z's application at its earliest opportunity."

"M2Z Networks is delighted to have the support of CALED," said Milo Medin, chairman of M2Z Networks and a member of California's Broadband Taskforce. "CALED's mission is to promote economic development in the largest state in the union and the 5th largest global economy. Its statement recognizes the direct link between affordable access and future economic growth for California. We are gratified CALED recognizes the urgency of swift action by the FCC and sees value in our offering."

About M2Z Networks

Founded in 2005 and headquartered in Menlo Park, Calif., M2Z Networks' goal is to transform the current state of the broadband marketplace by building a high speed wireless network throughout the United States. In May 2006, the company submitted a license application to the Federal Communications Commission to construct and operate a nationwide broadband wireless network in the 2155-2175 MHz spectrum band. Approval of the application would guarantee delivery of free, fast and family-friendly wireless broadband service to at least 95 percent of Americans within 10 years. For more information, please visit www.M2Znetworks.com

For more information or to receive a copy of CALED's letter to the FCC, please contact Robin Buckley on behalf of M2Z Networks at 703-533-9805 or [e-mail]