Mildura has entered the new era of television as it turns off its analogue reception to become Australia's first digital district.

The regional city in northwestern Victoria made TV history yesterday as it was the first area in the Land Down Under to switch to digital-only television.

The analogue network was switched off at 9am, while the rest of the country will follow in stages up to 2013.

Minister for Communications Stephen Conroy said that the switch was the biggest breakthrough in TV history in years. The last revolutionary event was when colour was introduced in the 1970s.

According to Senator Conroy, the analogue spectrum would be put in the market for the succeeding 18 months and may bring in billions for the federal government. Big telcos like Telstra, Optus and Vodafone are bidding for the space in the spectrum.

''We're not going to reveal our reserve price before the auction but taxpayers will benefit significantly,'' he said.

"Mobile phones and notebooks require an ever-increasing amount of bandwidth as internet applications proliferate.

''Worldwide, there is scarcity of spectrum and we'll be at the leading edge of the world in the amount of spectrum available.''

The switch-over to digital, however, wasn't free from glitches. Three transmitters had to be installed in Underbool, Ouyen and Robinvale in order to subdue reception black spots.

Senator Conroy said the areas that wouldn't be reached by the range of the transmitters would be serviced by satellites.

Nationally, around 68 per cent of households have upgraded to a digital signal by installing set-top boxes or buying a new TV.