Much to the dismay of some smaller Internet providers, the fate of the 2155-2175MHz band is still up in the air.

The band, which is unlicensed and unused, has been sought by companies, such as M2Z Networks and NetfreeUS, as a means to provide nationwide wireless broadband services. Each of the two companies had applied separately with the Federal Communications Commission for the rights to operate the band and use it to make a nationwide wireless network. However, the FCC announced Aug. 31 that it was dismissing both applications, and thus leaving the band’s future uncertain.

In a statement supporting the applications’ dismissal, commissioner Michael Copps said that “the proper way to allocate this spectrum in the manner that best serves the public interest is to conduct a general rulemaking.”

He described four different options that the commission should consider for dealing with the band, including opening it up for unlicensed use, designating it as an “open access model that would combine wholesale broadband access and a Carterfone mandate,” using it to create a free nationwide broadband network that would be supported both through advertising revenue and revenue generated from premium service fees and licensing it through an open auction.

In a separate statement, commissioner Jonathan Adelstein expressed frustration with what he said was a lack of progress by the commission in designating rules for the band’s use.

“I’m disappointed that despite the aggressive interest in and availability of this spectrum, the commission is only now expressing intent to seek comment on service rules for this band,” he said.

The companies that filed applications to operate the band haven’t given up, though. Shant Hovnanian, the CEO of Speedus Corp., the managing member of NetfreeUS, says that his company hoped to work with the FCC to shape their decision on the new rules.

“We are hopeful that there’s an expedited process now to establish rules where we could still be victorious in getting our format approved,” says Hovnanian, who wants to see the band used to create a free wireless network that will be funded by advertising. The idea is to make the Internet more like analog radio and television, where people can tune in for free in exchange for being exposed to advertisements.