Australian Government has decided to release 126 Megahertz of broadcasting spectrum as a digital dividend.This spectrum will become available as a result of the switch to digital-only television broadcasting, which will be completed in Australia by 31 December 2013.

LTE require spectrum allocation in the 2.5 GHz and/or 700 MHz bands. 700 MHz band is considered  very valuable spectrum due to its better propagation characteristics.

"Once analog television signals have been completely switched off and the spectrum subsequently cleared of other users, 126MHz of spectrum will be freed-up," said Senator Conroy, The Minister for Broadband, Communications and the Digital Economy.

The digital dividend will be released as a contiguous block of spectrum in the upper ultra-high frequency (UHF) band, comprising the frequency range 694 to 820 MHz inclusive.

This decision will allow the necessary work on digital channel planning and the auction of the spectrum to commence.

The Government aims to auction the digital dividend spectrum in the second half of 2012, allowing successful bidders ample time to plan and deploy the next generation networks that are likely to utilise the spectrum.

Last week Australia's Telstra had announced a peak download speed of 100Mbps and upload speed of 31Mbps over a 75km distance in LTE trails using Nokia Siemens Networks' equipments. 

Another telecom operator Optus has also shown interest in LTE spectrum auction and it is understood the telco has selected wireless network vendor Nokia Siemens Networks to provide the technology for the slated LTE trials.