Apsattv
14-12-2007, 10:14 PM
From http://www.ft.com/cms/s/0/f0967e70-a9b1-11dc-aa8b-0000779fd2ac.html
The BBC could release capacity for at least two new digital channels by accepting lower picture quality on Freeview and making more efficient use of its broadcasting spectrum, a report for the BBC Trust has concluded.
The Deloitte report was published as Ofcom, the media regulator, unveiled its plans for what it called the most important release of spectrum for 40 years, setting off what is expected to be a multi-billion pound scramble by technology businesses telecommunications companies, broadcasters and private equity groups for the scarce resource.
BBC executives said they would poll consumers on picture quality, as the trust cautioned they must change focus to providing maximum value for money to licence payers.
Ed Richards, chief executive of Ofcom, said a flood of responses to its “digital dividend review” consultation indicated there would be strong competition for the 120MHz of new capacity, most of which would be released by switching off analogue broadcast signals by 2012.
Companies such as Intel, Microsoft and Nokia were among 750 respondents to the consultation, he said, adding: “We’ve certainly had interest from the financial sector as well as the technology and telecoms sectors, and it wouldn’t surprise me if that interest grows.”
Uses for the spectrum could include mobile television services, local television channels in the 25 largest cities, agricultural monitoring or a new, fast, national broadband wireless network, he said.
He highlighted “cognitive radio” as one of a number of innovations that could become a reality because of the spectrum release.
The low-power technology, which is being tested by the Federal Communications Commission in the US, “senses” when spectrum allocated to other activities is not being used and uses it for brief periods of time, improving the capacity of existing spectrum.
Mr Richards reiterated Ofcom’s belief in a market-led approach, selling spectrum to the highest bidder except in the case of the programme-making and special events sector, where spectrum has been reserved because participants are deemed to be too small and fragmented to compete against other bidders.
Mr Richards said Ofcom staff had taken “a collective vow” not to speculate about the possible value of the spectrum to the Treasury, adding that the likely proceeds had not affected its policymaking.
The last big spectrum auction, for third-generation mobile networks, generated £22.5bn, but he described this as “a one-off”.
The auction is likely to take place in 2009, even though not all of the capacity will be freed up by digital switchover until 2012.
Ofcom believes the spectrum release to be the largest of its kind in the world, exceeding the 108MHz being auctioned in the US.
Ofcom could find itself clashing with the European Commission, which has urged a common approach to the digital dividend across the European Union. “We’re not keen on [a] mandatory [approach],” said Mr Richards.
The BBC could release capacity for at least two new digital channels by accepting lower picture quality on Freeview and making more efficient use of its broadcasting spectrum, a report for the BBC Trust has concluded.
The Deloitte report was published as Ofcom, the media regulator, unveiled its plans for what it called the most important release of spectrum for 40 years, setting off what is expected to be a multi-billion pound scramble by technology businesses telecommunications companies, broadcasters and private equity groups for the scarce resource.
BBC executives said they would poll consumers on picture quality, as the trust cautioned they must change focus to providing maximum value for money to licence payers.
Ed Richards, chief executive of Ofcom, said a flood of responses to its “digital dividend review” consultation indicated there would be strong competition for the 120MHz of new capacity, most of which would be released by switching off analogue broadcast signals by 2012.
Companies such as Intel, Microsoft and Nokia were among 750 respondents to the consultation, he said, adding: “We’ve certainly had interest from the financial sector as well as the technology and telecoms sectors, and it wouldn’t surprise me if that interest grows.”
Uses for the spectrum could include mobile television services, local television channels in the 25 largest cities, agricultural monitoring or a new, fast, national broadband wireless network, he said.
He highlighted “cognitive radio” as one of a number of innovations that could become a reality because of the spectrum release.
The low-power technology, which is being tested by the Federal Communications Commission in the US, “senses” when spectrum allocated to other activities is not being used and uses it for brief periods of time, improving the capacity of existing spectrum.
Mr Richards reiterated Ofcom’s belief in a market-led approach, selling spectrum to the highest bidder except in the case of the programme-making and special events sector, where spectrum has been reserved because participants are deemed to be too small and fragmented to compete against other bidders.
Mr Richards said Ofcom staff had taken “a collective vow” not to speculate about the possible value of the spectrum to the Treasury, adding that the likely proceeds had not affected its policymaking.
The last big spectrum auction, for third-generation mobile networks, generated £22.5bn, but he described this as “a one-off”.
The auction is likely to take place in 2009, even though not all of the capacity will be freed up by digital switchover until 2012.
Ofcom believes the spectrum release to be the largest of its kind in the world, exceeding the 108MHz being auctioned in the US.
Ofcom could find itself clashing with the European Commission, which has urged a common approach to the digital dividend across the European Union. “We’re not keen on [a] mandatory [approach],” said Mr Richards.