Ofcom has published a spectrum framework review, which says suppliers should be able to use the spectrum they own to freely develop customer technologies in demand and trade spectrum with other suppliers.
The regulator's chief executive Stephen Carter said, "This market-led approach to spectrum management will reward innovation."
The framework review is seen as an attempt by Ofcom to make the UK wireless market catch up with wireless markets in countries such as South Korea and Japan.
A spokesman for the user group the Communications Management Association said, "The association believes Ofcom should ensure, as a priority, the availability of spectrum for wireless broadband alternatives to digital subscriber line. The perception is that the scope for investment in new wholesale infrastructures in the UK is constrained by a lack of radical technology that has been proven in use elsewhere."
Amit Nagpal, senior consultant at telecoms research company Analysys, said, "This moves away from the command and control strategy [regulation style] previously employed."
The closing date for responses to the review is 15 February 2005.