Homes may be transformed into wireless entertainment “hubs” after Ofcom announced a relaxation of restrictions on wireless technology.

From Monday Ofcom will remove the requirement to hold a licence to operate equipment using approved Ultra-Wideband (UWB).

UWB allows the rapid transfer of data (up to 2 gigabits per second) over relatively short distances of about 30m (100ft). Because of its speed and low power consumption, UWB is a potential alternative to other local-area wireless technologies, such as Bluetooth.

The technology could encourage wireless connections between PCs, DVD players, portable music players and digital cameras. Ofcom said that its benefits include the “aesthetic advantage” of removing the tangle of unsightly cables in living rooms.

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Manufacturers predict that UWB could create completely wireless homes and workplaces. UWB sensors are being designed to help to prevent car accidents, and military spin-offs under development include guns that can shoot around corners and head-sets that give soldiers an electronic map of the battlefield.

Critics say that the technology is limited because of its short range. The signal can be boosted to travel over greater distances but it is not designed to penetrate walls.

The analysts In-Stat predict that nearly 300 million UWB devices will be sold worldwide by 2010, two thirds of them for PCs. UWB equipment is already exempt in the US and Japan from the need to hold a licence. Technology companies have started to develop and sell UWB products, such as UWB home hubs, for these markets.

Ofcom has participated in European negotiations to develop a common set of standards for UWB. Over the coming months other EU members are expected to introduce the necessary legislation to allow approved UWB equipment to be used without a licence in their countries.

Ed Richards, Ofcom chief executive, said: “Radio spectrum is an essential raw material in the development of converged communications services. We want to remove restrictions on the use of spectrum to allow the market to develop new and innovative services, such as UWB, for the benefit of consumers.”