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Introduction

1.1 Ofcom announced on 17 November 2005 the beginning of its Digital Dividend Review (“ DDR”) – the project which will examine the options arising from the release of spectrum afforded by the digital switchover programme.

1.2 The available spectrum includes the spectrum released by analogue switch off - the UHF spectrum in bands IV and V (470 – 862 MHz) with the exception of the spectrum reserved for the 6 DTT multiplexes.

1.3 The potential future uses of this spectrum are wide ranging and include: broadband wireless access, cellular mobile (for example, 3G and systems beyond IMT-2000), private mobile radio, further terrestrial digital television services (including standard definition television, high definition television and local digital TV), mobile digital multimedia (including mobile television), and Programme Making and Special Events (“PMSE”). This is not an exhaustive list nor does it indicate prior preference.

1.4 With the launch of the DDR Ofcom has announced that amongst the key issues it will consider are the:

• Potential uses of the available spectrum;
• Technical limits on spectrum use to prevent potential interference;
• Options for packaging frequencies to give maximum flexibility to the market; and
• Options for the design of an efficient award/allocation process which aims to maximise the value of the available spectrum to the economy and society over time.

1.5 As part of the DDR, Ofcom will be developing its policy on the award of this spectrum. In order to assist its policy development Ofcom is commissioning Analysys Consulting (leading a consortium including DotEcon, Aegis and Mason) to undertake a study to further its understanding of the available spectrum and its possible uses based on detailed market, technical and economic analysis.

1.6 The market, technical and economic analysis will take into account the views from people and organisations with an interest in the use of this spectrum.

1.7 This work by consultants will help to inform Ofcom’s own policy development, which will result in the publication of a consultation document by Ofcom expected to be before the end of 2006.

1.8 As with all spectrum awards, Ofcom’s policy is to favour the use of market mechanisms to award this spectrum via a technology and usage neutral auction that maximises flexibility for the market. This approach is supported by the Government, as set out in the Secretary of State for Culture, Media and Sport’s speech on 15 September 2005 confirming the timetable for DSO. It is also in accordance with the European Commission communication of spectrum policy priorities for DSO, published on 29 September 2005.

The full document is available below:

• Terms of reference for the Digital Dividend Review consultancy work [pdf]
  Full Print Version

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