M2Z Networks – Free broadband? Too good to be true?

M2Z Networks is launching with the business model similar to broadcast television. The fact that you can get television for free and maintain everything through profits by advertising. We’re hesitant to think that this will work. Smaller models have been attempted and failed miserably, including free Internet access via advertisement. Juno, NetZero, and others have used to be advertisement based for free for dial-up. Even they have since moved to a paid-subscription base. Screen realty is a pricey commodity and not many are willing to give that up for ads. There used to be hacks and other programs to get rid of the advertisements on dial-up programs that were banking on this model.
Interestingly enough, they claim to be using a “new” technology based on OFDM (orthogonal frequency division multiplexing). Not exactly sure what’s so new about this technology being that 802.11a (1999) has OFDM implemented and experimentally in wireless, it’s been discussed since 1993. The patent itself is even an earlier date (1966). Currently, OFDM has become a standard in WiMax, and is being considered in both 4G cellular and 802.11n.
With a $1 billion price tag, we’re wondering what type of coverage for this “basic network” and how they’re going ot defeat the “screen realty” issue. What lies in wait isn’t whether or not the technology can be done, or even if this is achievable. It’s whether or not M2Z Networks is sustainable on advertising. Given past models, it seems too good to be true.
Via BusinessWeek