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This ability otherwise functions as the summoner’s normal summon monster I ability.
Starting at 1st level, a summoner can cast summon monster I as a spell-like ability a number of times per day equal to 3 + his Charisma modifier. Drawing upon this ability uses up the same power as the summoner uses to call his eidolon. As a result, he can only use this ability when his eidolon is not summoned. He can cast this spell as a standard action and the creatures remain for 1 minute per level (instead of 1 round per level). At 3rd level, and every 2 levels thereafter, the power of this ability increases by one spell level, allowing him to summon more powerful creatures (to a maximum of summon monster IX at 17th level). At 19th level, this ability can be used as gate or summon monster IX. If used as gate, the summoner must pay any required material components. A summoner cannot have more than one summon monster or gate spell active in this way at one time. If this ability is used again, any existing summon monster or gate immediately ends. These summon spells are considered to be part of his spell list for the purposes of spell trigger and spell completion items. In addition, he can expend uses of this ability to fufill the construction requirements of any magic item he creates, so long as he can use this ability to cast the required spell.
The progression of the spell-like ability is independent of your actual spellcasting, increasing at every odd level. The Master Summoner explicitly states it works the same way as the regular class except for the differences specified.
Part of the confusion may stem from the ability's name. The class feature is named summon monster I. Gaining higher levels of the summon monster spell is part of the summon monster I class feature. So an ability that otherwise works as summon monster I would include the higher levels of summon monster unless it specified otherwise.