Free MoD spectrum auction to begin in 2008
by Jan Harris
It was announced in the budget that the government will begin to auction radio spectrum currently used by the Ministry of Defence in 2008.
A study of the spectrum allocated to the MoD will be completed in May 2008. This will identify how much spectrum the MoD can spare. A full plan for the sale of the spectrum will be published when the study is completed.
The government will begin to release the spectrum into the market later in 2008, with the sale continuing through 2009 and 2010.
It could be used by telecoms companies for a variety of services such as wireless broadband access or to extend 3G services.
Winners of the auction will be allowed to use the spectrum licences when the analogue signal is switched off region by region as the UK switches to digital television.
The auction will be monitored by telecoms regulator Ofcom.
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This is the best way for the government to raise money, but is it the most cost effective way to achive that. The problem is that the companies that buy those frequencies will relay those amounts onto the end users. So, we at the end don’t really benefit from all this.