The auction will be held in Spring 2008 and is for the 1452-1492 MHz band, also known as the ‘L-Band’.
Ofcom will release the spectrum on a technology and service neutral basis, allowing users the flexibility to decide what technology to use and which services to offer.
The regulator’s decision to hold the auction is part of its plan to create more competition and choice in the UK radio spectrum.
Ofcom’s chief executive Ed Richards said: "Ofcom is responsible for ensuring the most efficient use of the UK’s finite spectrum resource.
“This marks the start of our fifth spectrum auction process as we continue to release spectrum for the benefit of consumers and citizens."