Ofcom to auction most of Digital Divided spectrum

With the support of DCMS and the key Parliamentary committee behind them, it should come as no surprise that Ofcom has not altered its long-held plans to auction the DDR spectrum.

In its press release issued today, Ofcom state in part:

‘Ofcom’s objective is to ensure that the digital dividend is used to deliver the maximum benefit for citizens and consumers in the UK.

Following consultation and an extensive programme of research, Ofcom has concluded that the most effective way to maximise the value to society is to take a market-led approach, giving users the freedom to decide how spectrum is used and clear incentives to use it efficiently.

This approach will create the maximum flexibility for different services. It will also allow the use of the spectrum to change over time, as demand develops, technology evolves and new services become available.

This approach of awarding spectrum to those who will make the most of it and value it most will deliver significant benefits to society, including:

  • innovative technologies and services that will be launched using the digital dividend;
  • more competition in wireless services which could lead to greater choice and lower prices; and
  • a significant contribution to the UK, as the overall benefit from the use of the digital dividend is estimated to be £5bn to £10bn of added benefit to the economy over 20 years.

To maximise these benefits, Ofcom plans to auction most of the digital dividend in 2009, offering licences that allow users to decide the technology and service, and that can be traded after award.’

* * *

If I have correctly read Ofcom’s past statements on these issues, this leaves Freeview with somewhere between 4 and 6 HD channels (unless, of course, some broadcasters participate in the auction … you never know). I personally think that is insufficient to maintain Freeview as anything other than a weak distribution alternative to cable and satellite in the longer term, but technology continues to evolve — maybe something will change.

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