
Five, which is yet to launch an HD service on any platform, was on course to launch a service this year, after obtaining provisional approval from Ofcom in June 2009.
However, Ofcom has revealed it has decided to withdraw the capacity from Five, after the broadcaster failed to provide the regulator with a launch date, as well as other key information regarding its application.
Five today said it was "not in a position" to take up the channel, which would have seen it join the BBC, ITV and Channel 4/S4C in having an HD presence on Freeview. It pointed to the financial challenges of operating a channel, given the pressure that advertising-funded broadcasters are under.
The other three broadcasters are expected to launch HD channels on the terrestrial television platform within the next few weeks.
Five said it intended to apply for the fifth HD channel on Freeview, which is due to launch in 2012, when Ofcom advertises it next year.
In the meantime, the BBC is now able to use the fourth channel after Ofcom decided to not to reserve the capacity to any commercial public service broadcaster.
This will give the corporation the space for an additional channel to BBC HD, its first and only HD channel which is currently available on Sky, Virgin and Freesat, and is due to launch on Freeview.
A BBC spokeswoman said the corporation would now consider options to ensure a channel was available "as soon as possible".
Ofcom also considered a joint application from Channel 4 and S4C for a film and children's channel that it originally considered at the same time as Five, but found the pair could not commit to a specific launch date.
The details of Five's application show it proposed a channel showing an HD simulcast of its main channel between 5pm and 1am, with an HD service from another unidentified broadcaster between 6am and 5pm.
According to Ofcom, the other broadcaster would have had to be a public service broadcaster, which limits it to one of the BBC, ITV, Channel 4, a Channel 3 licensee such as STV, or S4C.