12 December 2006 - Ofcom, the UK's regulatory body for the telecoms industry has announced plans for the country's largest single freeing-up of radio spectrum. The consultation document seeks views on proposals to auction licences to use three spectrum bands: 2500-2690 MHz, 2010-2025 MHz and 2290-2300 MHz. In total 215 MHz will be available for "a range of new services such as mobile broadband and advanced wireless services".

Ofcom's proposals come as part of a wider programme to release around 400 MHz of prime spectrum to the market over the next few years. The programme includes a dozen different bands, including the significant spectrum that will be freed up by the switchover to digital television in 2008-2012.

Ofcom believes that the most efficient way of securing the optimal use of the bands covered in the consultation document is by awarding licences through auction, as it makes the spectrum open to the widest possible range of users.

In the consultation document published on the 11th December 2006, Ofcom proposes to release the spectrum though two separate auctions:

• The bands 2500-2690 MHz, 2010-2025 MHz will be packaged into a number of lots and auctioned together. Participants will be able to bid for multiple lots. The auction will be conducted online using a secure server and there will be a number of rounds to the auction.
• The bands 2290-2300 MHz will be packaged as a single lot and auctioned though a sealed bid process.
  

According to the Communications Act 2003, the main objective for the awards is "to promote optimal use of the spectrum in the interests of consumers and citizens" and not to raise revenue. It is hoped that the release of these bands will create opportunities for additional competition, innovation and expansion in wireless services.

For the award of the bands 2500-2690 MHz, the proposed auction process has been designed to allow multiple licences to be granted. Ofcom believes that the spectrum could be released by the end of 2007 although this is subject to on-going EU regulatory discussions. All licences are proposed to be tradable.

Ed Richards, Chief Executive of Ofcom, said: "Spectrum is a valuable resource that is central to the operation of modern communications."

He added: "Releasing more spectrum to the market will create new opportunities for innovation in wireless technologies, promoting competition and driving convergence."

The consultation closes on 9 March 2007.

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