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The auction of valuable radio spectrum freed up by the end of analogue terrestrial TV would begin in summer next year under new Ofcom proposals.
The regulator has begun consulting on how it should manage the auction and subsequent licensing of the cleared UHF spectrum, known as the digital dividend.
Few conditions would be imposed on buyers under Ofcom's aim of putting " the market at the centre of decision-making, rather than the regulator".
Licencees would be able to use the spectrum - totalling 128 MHz - in any way they choose under the proposals. They would also be able to trade it as on their own terms.
Ofcom said the most likely applications were "mobile multimedia services (mobile TV), mobile broadband (including two way mobile services), and digital terrestrial TV (both in standard and high definition)".
It added: "...for the most part it will be users, not regulations, that decide how, for what, and by whom the spectrum should be used, subject mainly to technical conditions designed to prevent harmful interference."
The UK's public service broadcasters have previously suggested they will not be bidding for the spectrum to operate high definition channels.
Successful bidders will be able to use their spectrum as the analogue terrestrial switch-off takes place region-by-region. In London the release is likely to be delayed until after the 2012 Olympic Games because a large amount of spectrum may be needed by operators and broadcasters on the ground.
Ofcom will impose Spectrum Usage Rights "tailored to the different transmission network types that are likely to be deployed". For television services, ownership regulations similar to those for DTT will apply, and Ofcom proposes to "facilitate technical interoperability between any new DTT services in cleared spectrum and existing DTT services".
There would be no "use it or lose it" conditions under the proposals, no roll-out obligations and no access requirements.
Participants would be allowed to buy up to 50 MHz each - meaning all the spectrum on offer could potentially go to just three buyers.
Ofcom has invited comments on its proposals.
