New spectrum could add £10bn to the UK economy

by Mark Banham, brandrepublic.com, Tuesday, 19 December 2006, 3:30pm,

LONDON - Media regulator Ofcom has estimated that digital switchover, slated for 2010, will benefit the economy to the tune of between £5bn and £10bn over 20 years, because of the introduction of new digital radio and television stations.

Ofcom said it proposes to make new digital spectrum available in a way that allows the widest possible range of uses.

Licences will be tradeable and liberalised to allow users the flexibility to decide what technology to use, what services to offer, and to change their use of the spectrum over time, according to Ofcom.

The released frequencies will be offered in packages that are suitable for as many uses as possible, including national digital terrestrial television and mobile services. Ofcom proposes to award the spectrum by auction, as the most open and transparent mechanism available.

A new consultation next year will seek public views on a number of different auction designs.

The auction of spectrum likely to be held towards the end of 2008, subject to the outcome of this consultation, Ofcom said.

The spectrum should become available for use on a region-by-region basis as digital switchover takes place on a phased basis between 2008 and 2012.

Ed Richards, Ofcom chief executive, said: "The Digital Dividend Review offers the prospect of a range of new services for the benefit of numerous communities and businesses across the UK.

"Our aim is to ensure that as many users as possible have the freedom to innovate and the scope to deliver the maximum benefits to UK society."

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This article was first published on brandrepublic.com