Ofcom confirms 'digital dividend' auction

Ofcom has confirmed that it will not reserve spectrum currently being used for analogue terrestrial television for the broadcasting of high definition digital terrestrial services after digital switchover is complete in 2012.

The freed spectrum - initially 112 MHz consisting of channels 31-35, 37, 39, 40 and 63-68 - plus other frequencies to be made available later - will be auctioned off producing a "digital dividend" of between £5bn and £10bn in terms of economic benefits over 20 years.

The auction will take place in 2009 and is being advertised as suitable for wireless broadband, mobile TV, local TV, digital terrestrial TV, wireless microphones, and low power applications based on wi-fi.

"The digital dividend will be one of the most significant and valuable spectrum releases in the UK for 20 years," said Ofcom chief executive Ed Richards. "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."