A consultation on the proposed approach to the award of the digital dividend spectrum (470-862MHz).

Consultation: Digital Dividend Review
Lead Agency: Office of Communications (Ofcom)
Published: 19.12.2006
Closing date: 20.03.2007

Download: The CMA DDR Briefing

 

Introduction
This consultation sets out proposals for the most effective use of the radio spectrum released by the switch to all-digital television broadcasting between 2008 and 2012.  It is generally agreed that the mostvaluable spectrum in the UK is between around 200 megahertz and 1gigahertz – which offers just the right combination of range(propagation) and capacity (bandwidth).  At the moment, nearlyhalf of this spectrum is used to broadcast analogue television – 368megahertz, or 46%, of the 800 megahertz.  This spectrum, termed the ‘sweetspot’ in the Ofcom diagram below will be released by the switch to all-digital television broadcasting between 2008 and 2012.

Background
The Digital Dividend Review (DDR) is an Ofcom project which examines the options arising from the release of spectrum afforded by the digital switchover programme.  The consultation was preceded by an extensive research programme over the past year into the potential uses of the digital dividend spectrum.  CMA Members, Public Voice and the CMA made submissions during the research phase in order to ensure that the social value of spectrum remains on the DDR agenda.

 

Analysis
The digital dividend is one of the largestreleases of valuable spectrum in theUK for many years. Ofcom estimatesthat the benefit to the economy from the use of this spectrum (as opposed torevenues raised for the Government from the auction of the spectrum) is likelyto be around £5bn-10bn in total over 20 years.  Ofcom proposes to releasethe spectrum on a technology and service neutral basis. Under this proposal,licences would also be tradeable and ‘liberalised’ to allow users theflexibility to decide what technology to use, what services to offer, and tochange their use of the spectrum over time. Whilst the consultationdocument suggests that local TV is a plausible use of the digital dividend withpotentially high value to society, Ofcom does not believe that spectrum shouldbe reserved exclusively for local television.

This suggestion is linked to Ofcom's proposal to offer frequencies in'packages' that are suitable for as many uses as possible, including nationaldigital terrestrial television and mobile services. Ofcom proposes to awardthe spectrum by auction.

These very worrying proposals will require a robust response, not only from theCommunity Media sector but also from civil society.  For this reason theCMA is working with Public Voice - the leading voluntary sector coalitioncampaigning for citizens' interests in communications - to encourage civilsociety groups to participate in the consultation, explaining what is at stake,where to find out more and how to respond to Ofcom's consultation.

Process
Ofcom welcomes comments on these proposals. In addition, the regulator will conduct a substantial programme of stakeholder engagement during January and February 2007, to allow stakeholders to express their views on the proposals they have put forward.  Ofcom expects to release a statement on this consultation in or around July 2007.
Further Information
Further information about this consultation is available on the Ofcom website: Digital Dividend Review Consultation.