Value of spectrum use in UK up 25% in five years

The value of the airwaves used by mobile phone services and broadcasters in the UK has risen by a quarter in five years, which will boost hopes for a strong return from the auction of 4G spectrum due next year. The economic value of spectrum use in the UK was £52bn in 2011, an increase of 25 per cent in real terms since 2006, according to a study by Analysys Mason, the consultancy.

There are plans for the release of 500MHz of spectrum, currently used by the public sector, for commercial use by 2020, which could deliver a further windfall for state coffers as well as boosting the wider economy. Radio spectrum is a valuable but scarce resource used under license by a range of companies and public bodies. Different types of spectrum have different values, but increased demand for access has prompted the government to review where freeing up airwaves can add the most economic value. The study was released as the European authorities decided to allow additional spectrum for 4G mobile broadband use that had previously been assigned for 3G use, underlining the shift towards using phones for mobile internet services.