TV auction to fund high-speed broadband?

The government is considering using the upcoming auction for television airwaves as an opportunity to secure private investment in a super-fast broadband network, it has emerged.

Experts believe that the forthcoming auction of the UHF band, which currently carries the analogue television signal set to be turned off in 2012, could fetch around £5 billion.

In his preliminary Digital Britain report to be published on January 26th, communications minister Lord Carter will reportedly lay out plans for the giveaway of spectrum to companies which pledge to invest in Britain's internet future.

National Endowment for Science, Technology and the Arts (Nesta) has proposed the so-called Spectrum for Speed scheme, which it believes would accelerate the universal roll out of broadband at up to 100 megabits a second.

Jonathan Kestenbaum, Nesta chief executive, told Times Online: "The case for this type of deal is compelling."

"In unprecedented economic times, we have to think imaginatively about how we can invest in big infrastructure projects while not cutting off large swathes of communities from economic and social development," he added.

The government held a similar auction in 2000 for 20-year third-generation (3G) mobile licenses in which five mobile operators spent around £22.5 billion.