Ofcom is to allow the government and other public bodies to share and trade their ownership of radio spectrum.

Roughly half of the bandwidth in the range of 15Ghz or less is currently owned by public sector organisations. The versatile nature of the low frequency spectrum makes it highly desirable and suited to a wide range of uses, from mobile TV to wireless broadband.

The spectrum currently used by the public sector is thought to be worth somewhere between £3bn and £20bn. Ofcom now aims to give organisations the option of cashing in by issuing new regulations, which will be discussed in a consultation this summer.

"By working with these organisations 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," said Ofcom chief executive Ed Richards.

Later this year Ofcom will hold the first in a series of auctions for wireless bandwidth earmarked for redistribution.

This week the regulator named the ten companies that have registered to bid for spectrum in the range of 10 to 40ghz, a list that includes BT, T-Mobile and UK Broadband Ltd.

The full list is here.