The UK's analogue terrestrial TV frequencies will be put up for auction in 2009 after Ofcom decided to stick with its original plans for the Digital Dividend.
After a year of consultation, the UK's media regulator has decided it won't reserve any spectrum for special uses, whether hi-def TV, standard-def TV, mobile TV or broadband.
The 112MHz, plus some other frequencies, are being released over the next five years as the UK switches from analogue to digital TV.
They will be distributed in an open auction in the first half of 2009, which could raise billion of Pounds for the Treasury.
Bidders could include mobile phone and broadband companies, Sky or Virgin.
Ed Richards, chief executive of Ofcom, said: "We have carefully considered arguments for reserving spectrum for a variety of particular uses, but we have not found them compelling. Giving spectrum to one use will deny it to others. It will also tend to reduce flexibility and blunt incentives.
"In light of all the evidence available, we have concluded that we should take a market-led approach to awarding the digital dividend. This means that we will auction the spectrum in a way that allows users to decide how the spectrum should be used and creates the maximum flexibility and opportunities for different technologies and services.
"It is emphatically not our objective to award the digital dividend so as to maximize revenue for the Exchequer."
Ofcom's original Digital Dividend Review, last December, caused a furore over lack of capacity for high-definition TV on Freeview and accusations of poor-quality consumer research.
Last month, broadcasters backed a new plan to reorganise the current Freeview capacity, allowing the launch of three HD channels in 2009-2010 and a fourth by 2012.
The Digital Dividend auction will also override calls for specific spectrum for extra standard definition digital TV channels, mobile TV services, or mobile broadband. Some groups had also called for an 'innovation reserve' which would be held back to take advantage of new broadcasting technology next decade.
However, Ofcom will also set aside some 'interleaved spectrum' - which sits between the Freeview multiplexes - for three uses: wireless for making TV programmes and other live events; cognitive radio, and potentially for local digital television channels.
Cognitive radio is an emerging technology that can detect portions of unused spectrum and use it without affecting transmissions on neighbouring frequencies. It can be used for a wide variety of applications.
Ofcom will also auction off UHF channel 36, which is being used for aeronautical radar until March 2009, and provides national coverage on a single frequency group.
Details of the auction will be published in Spring 2008, with bidders expected to include mobile phone companies, broadband providers, and other media groups such as Sky, Virgin, National Grid Wireless and Arquiva.
