Naive backwards thinking. The answer should be "YES. A THOUSAND TIMES YES", however it has not been phrased properly.
We should absolutely sell off our bandwidth. It absolutely makes sense to use mobile communication frequencies best suited to communicating with mobiles.
It makes absolutely no sense to deliver IPTV via wireless. If you are in a static location, it also makes no sense to use wireless infrastructure for a permanent connection.
Spectrum is valuable stuff. We absolutely should sell our spectrum to whomever will pay the most for it, and use the proceeds to provide a real public communications backbone in the UK. FTTH is what is required, not in towns but everywhere. The 3G auction produced enough money to pay for every home in the UK to be lit.
So, 1) Sell bandwidth, 2) fibre up the country with the money, 3) allow operators to use their newly freed up bandwidth.
In one step, we've paid for the modernization of our internet infrastructure in a way that no other country in the world could match, we've maximised the usage of our spectrum to allow our communications to be more ubiquitous and by making FTTH universally available, we're not limiting the access to information to the rich.
All by flogging some radio spectrum...