The spectrum, known as the digital dividend, is in the UHF band and is currently used for the delivery of TV channels using analogue technology.

Signals transmitted in these bands can travel over large distances and carry a large amount of information.

These characteristics make the spectrum very suitable for delivering a wide range of new services, including:
* Ultra-fast mobile broadband.
* Mobile television.
* More digital television services, in standard or high definition.

Ofcom said it was proposing to release the spectrum in a way that will promote competition and innovation and allow the widest range of technologies and services to access the spectrum.

The licences would be tradable and flexible to allow users to determine the technology and services they provide and to change the use of the airwaves as new technologies and services emerge.

Ofcom plans to make 128MHz of cleared spectrum available on a UK-wide basis, holding an auction in 2009.

The spectrum will be freed up for new uses in phases, as digital switchover proceeds between now and 2012.

Ofcom said its proposals include limiting the amount of spectrum that any one organisation can acquire, as well as containing measures to prevent new services from causing interference to existing digital terrestrial television services.