The move is opposed by large corporate carriers such as T-Mobile, Verizon Wireless and AT&T, which say their customers will experience interference from users of the new spectrum. A report released Friday by FCC engineers, however, disputes that, saying field tests showed little interference, The Washington Post reported.

FCC Chairman Kevin Martin wants to use the available spectrum for future free community-based wireless broadband connectivity providers, as well as for specialty private service providers.

"We need to reserve some spectrum for free broadband services," Martin told the Post. "This would be lifeline broadband service … that would be designed for lower-income people who may not otherwise have access to the Internet."

One vocal opponent to the plan has been T-Mobile, which says it will cause major disruption for users at a time when it is unveiling its new G1 phone in partnership with Google, the newspaper said.