Ofcom has announced plans to release additional wireless radio spectrum for use by UK internet service providers.
The media regulator will auction off the 2010-2025MHz band, with major mobile broadband providers expected to be among the bidders.
A consultation into the proposal was launched back in May 2010 and after considering various stakeholder contributions, Ofcom has decided to offer the unused spectrum to the private sector.
But before the band is sold, it will be used to allow data transfers from specific sites during the 2012 London Olympic Games.
Ofcom explained that it had received ten responses in total to its consultation, with a demand for additional mobile broadband services being demonstrated by the contributors.
The regulator noted that some firms "argued implicitly or explicitly in favour of a competitive award" of the 2010 MHz band.
"Evidence of demand for mobile services has also come from the German spectrum auction in May 2010, in which the 2010 MHz band was acquired for £5.7 million," Ofcom stated.
Earlier this week, the UN International Telecommunications Union claimed that broadband providers are in danger of running out of capacity as the popularity of mobile broadband increases.