UK defense ministry may sell radio spectrum

LONDON (Reuters) - The British government, including the Ministry of defense (MoD), will be able to share or trade some of the most valuable radio spectrum in the country under new guidelines being drawn up by the communications regulator.

Watchdog Ofcom said on Thursday it expected the new rules to free up some prime spectrum held by the public sector, which has been estimated to be worth between 3 billion and 20 billion pounds ($6 billion-$40 billion), for new mobile services.

"Public bodies and the MoD in particular hold some of the most valuable and sought-after radio spectrum," said Ofcom Chief Executive Ed Richards, who aims to consult the industry about its plans to enable public spectrum trading in the summer.

"By working with these organizations we are enabling them to trade and release this spectrum, which will create new opportunities for the development of wireless services for the whole country."

The MoD, which holds around a third of the most sought-after public-sector spectrum, has said it is committed to sharing and releasing "a significant proportion" of its spectrum and plans to consult on proposals in May.

Public bodies such as the MoD use around half of the radio spectrum below 15 Gigahertz -- the most sought after and congested frequencies.

(Reporting by Kirstin Ridley, editing by Will Waterman)