Industry offered spectrum for broadband provisions

The sale of spectrum within the UHF bands could be abandoned, in order to offer internet service providers an incentive to take part in the much publicised government plans to provide broadband for all.

Instead of having to bid in the auctions for a slice of the spectrum, companies could be given them in return for backing the plans to provide a broadband connection to every house in the UK.

This is a classic carrot tactic to encourage some companies to get on board.

The plans will be unveiled in the interim Digital Britain report by the communications minister Lord Carter.

This is due out on the 26th January, when exactly how this is going to work, and exactly how much the government is going to lose from not holding the auctions, will be clear.