The US government has put forward a plan increase the space available for wireless broadband services.
The Federal Communications Commission (FCC) has issued a proposal which would repurpose 40 Mhz of spectrum space from the Mobile Satellite Service 2Ghz band for use as wireless broadband space.
The proposed band is currently owned by satellite TV provider Dish Network following a $3bn purchase from TerreStar networks. The company has lobbied the FCC to open it for wireless broadband network.
The proposal will now enter a Notice of Inquiry phase in which the FCC will seek comment on the proposal.
Industry groups are applauding the decision.
Wireless industry advocacy group CTIA said that the move could be vital for expanding wireless broadband service.
"While we have not yet had an opportunity to review the details of the FCC's proposal, CTIA has long called for the FCC to open a rulemaking as the next step in determining how the 2 GHz spectrum should be most effectively deployed," the group said in a statement,
"CTIA and our members look forward to working with the Commission to find ways to harness this underutilised spectrum to benefit the nation's wireless consumers."
The FCC's ruling comes just hours after UK chancellor, George Osborne, issued a budget plan which will see more than £100m designated for projects which will expand broadband speeds and availability in 10 UK cities including London and Manchester.
Use of spectrum space for wireless networks has become a hot topic for the FCC in recent weeks.
The Commission is investigating whether it can allow wireless broadband activity on bands in the lower 700Mhz range.
In a separate case, the commission earlier this month turned down a proposal for spectrum use by LightSquared after determining that the company's planned network would interfere with the GPS system.
Fallout from the ruling caused the company to lose a $9bn deal with Sprint.
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