Two events at Ofcom recently have helped update us on the Digital Dividend Review — that is, the question of how to award the valuable UHF frequencies that become available through switching off analogue TV broadcasts. The consultancy Analysys, which is carrying out the review, briefed stakeholders; and Ofcom held a round table event with consumer and citizen groups.

The emphasis at both can be summarised as follows. The DDR process will not judge who are to be the winners and losers in the turf war to get hold of these frequencies. The DDR is about designing a process which will award spectrum in the most efficient and socially valuable way. Ofcom’s ‘preferred approach’ remains that of marketising the spectrum, ie awarding it through competitive auction and allowing it to be traded on. However, it is recognised that a market approach alone may have limitations, in particular if it does not provide for socially beneficial uses of the spectrum (or what Analysys refer to as ‘external value’). So the study is looking at how such benefits can be quantified.

While ‘the threshold for regulatory intervention must be high’ (Analysys) it is possible that some intervention will be required. This is likely to be through adjusting the auction process, for example by attaching conditions to the tender, or by awarding credits to bidders who include socially beneficial objectives, or at the heaviest end, by reserving some spectrum for a new licensing regime, e.g. for local television services, which would require an Order from the Secretary of State.

The latest estimate of the timetable is that Analysys will finish its evidential analysis by the end of the summer and report to Ofcom before mid-autumn. Ofcom will then interrogate their findings before preparing what looks likely to be a whacking great consultation paper. The consultation will start ‘at the end of the year’ with a likely deadline for responses of March 07. Ofcom will make its policy decisions by mid-07.

Analysys has said it is still open to receiving evidence from stakeholders — to DDRconsultancystudy@analysys.com
For those who want information from Ofcom I suggest emailing mark.bunting@ofcom.org.uk

Analysys have a very useful set of presentation slides at the following address but be warned that you have to register to receive them, and they are then sent to you as an email — of 4MB:

http://www.analysys.com/default_acl.asp?mode=article&iLeftArticle=2042

Both Ofcom and Analysys are promising further briefing events later in the process.