Public sector to free up valuable spectrum

Radio spectrum worth up to £20bn could be released by the public sector under new plans from Ofcom.

Currently 46% of the radio spectrum, including some of the most sought-after frequency ranges, is reserved for public functions and particularly the Ministry of Defence.

There is huge demand for it, especially from broadcasters and mobile phone operators, and Ofcom estimates the public sector chunk is worth between £3bn and £20bn.

The regulator will detail plans and regulations for the public sector to trade its holdings in the summer.

It will allow bodies to "release or share" spectrum and introduce "sharper, more effective incentives for them to take advantage of these". The spectrum review document states: "This has the potential to deliver substantial benefits for citizens and consumers."

The MoD has already said it will review its spectrum with a view to freeing up a "significant proportion". It plans to consult on plans in May.

Ofcom chief executive Ed Richards said: "Public bodies and the MoD in particular hold some of the most valuable and sought-after radio spectrum.

"By working with these organisations we are enabling them to trade and release this spectrum which will create new opportunities for the development of wireless services for the whole country."

The review notes that spectrum is crucial to 3% of UK GDP. Its value to the economy has grown by 50% since 2002. It states: "Demand from commercial operators for certain frequencies, especially those suitable for mobile applications, already exceeds availability and this trend is forecast to continue into the medium term."

Ofcom plans to introduce trade-able spectrum holdings for public bodies in the form of recognised spectrum access.