Ofcom Unveils Digital Dividend Plans
Ofcom has outlined its plans for the “digital-dividend” auction, which will occur after digital switchover in 2012 when valuable broadcast transmission spectrum will be freed up.
The regulator has decided on a market led approach, although it has identified one case where it will reserve spectrum to avoid the risk of market failure in an auction.
The freed-up spectrum will be suitable for services including ultra-fast wireless broadband, mobile TV, more digital TV channels, local TV, wireless microphones and low power applications developed from wi-fi.
Ofcom plans to auction most of the digital dividend in 2009, offering licences that allow users to decide the technology and service, and that can be traded later.
The overall benefit from the use of the digital dividend is estimated to be £5 billion to £10 billion of added benefit to the economy over 20 years.
According to Ofcom’s market research there is keen public interest in high speed mobile broadband, so the regulator says that it will package the cleared spectrum in a way that makes it suitable for this.
The spectrum auction could also see high-definition and standard definition channels added to the Freeview electronic programme guide.
Ed Richards, chief executive of Ofcom, said: “The digital dividend will be one of the most significant and valuable spectrum releases in the UK for 20 years. Our approach is designed to maximise these considerable benefits for UK citizens and consumers as a whole.
“We can expect the benefits of the digital dividend to include more choice, fresh competition and technological innovation.”
Ofcom will publish further consultations in spring 2008 on the detailed design of the digital dividend awards.
Ofcom: 020 7981 3040 www.ofcom.org.uk