The US communications regulators declined a proposal for building a free, nationwide wireless broadband network using unused airwaves.

The Federal Communications Commission (FCC) announced on Wednesday that it turned down the proposal that the winner of an auction for the radio spectrum offer free internet service to all those who connects to it. The proposal had come from a startup known as M2Z Networks.

Chief of the FCC’s wireless bureau, Ruth Milkman, said in a statement that they considered the proposal carefully and thoroughly, but found that it was not the best policy outcome.

Actually, the proposal for the free wireless broadband network through the use of spare airwaves had been opposed by many wireless carriers, including T-Mobile USA. Opponents of the free wireless broadband network proposal claims that it would interfere with their own services.

Speaking on the topic, Jim Cicconi from AT&T said, “We've worked hard to find common ground on these difficult issues and feel good progress has been made. In particular, we feel a path can be found that addresses concerns about Internet openness, while at the same time preserving jobs and protecting needed investment.”

FCC Chairman Julius Genachowski also announced that the agency would mull over how its rules should behave with mobile-phone and special services.