The WSJ is reporting that the FCC has cleared the way for free wireless web nation wide. FCC engineers concluded that concerns are overblown about such service interfering with other carriers. The network would have to reach 50% of the U.S. population in four years and 95% within a decade.

The report clears the way for the FCC to move forward with a plan to auction off airwaves to a bidder who agrees to offer free, national wireless Internet service. The FCC is expected to finalize rules this year and could begin auctioning off airwaves in early-to-mid 2009.

T-Mobile has fought the FCC proposal to offer free web access by raising concerns that the service would disrupt the company’s 3G wireless network, for which it charges customers. But FCC engineers said recent tests in Seattle showed the airwaves could be used for a wireless broadband service “without a significant risk of harmful interference.”

“This report confirms that we’re able to move forward with broadband services as proposed by Chairman Martin without causing harmful interference to license users of adjacent spectrum,” said an FCC spokesman.

A T-Mobile spokeswoman was not available for comment.

M2Z Networks, a Kleiner Perkins backed start-up has asked the FCC for airwaves to build a national wireless Internet network. The start-up said it could pay for the build-out via advertising and a subscription-based plan for consumers willing to pay more for faster service.