Wireless technologies have become a valuable asset to improve communications efficiency and reduce costs for industries and governments around the world. The first generation of wireless technology, analog cell phones, is still used in many areas of the country. The second generation of wireless technology added digital “personal communications services,” such as voice mail, text messaging, and access to the World Wide Web. The second generation is growing at an extraordinary rate and is an essential part of the way the world does business. Today, industry is also developing a third generation of personal communications, which are expected to give consumers mobile, high data rate, high-quality multi-media services. The most technically suitable spectrum for mobile communications, public and private, is below three gigahertz. This band of spectrum is the best match for special spectrum propagation characteristics (such as distance, capacity, and reliability) required by DOD, other federal agencies, and commercial wireless firms. As a result, this spectrum is the subject of much competition among the different users. This competition presents major spectrum management issues for decisions by governmental organizations within the United States and by international organizations composed of sovereign nations. FCC and NTIA manage the radio spectrum in the United States. NTIA is the executive branch agency principally responsible for developing and articulating domestic and international telecommunications policy for the executive branch. NTIA is also responsible for managing the federal government’s use of the radio spectrum. FCC, an independent agency of the federal government, has authority over commercial spectrum use, as well as the use of spectrum by state and local governments. NTIA and FCC manage the spectrum through a system of frequency allocations, allotments, and assignments. Previously, Congress directed the reallocation of spectrum from federal to private sector use under title VI of the Omnibus Budget Reconciliation Act of 1993 (OBRA 93) and later expanded the reallocation of spectrum under title III of the Balanced Budget Act of 1997 (BBA 97). Under these laws, NTIA identified a total of 255 MHz for reallocation. Because radio waves transcend national borders and the number of global services has been increasing, international coordination of spectrum is a critical component of the spectrum allocation process. The radiocommunication conferences of the International Telecommunication Union (ITU) are the principal mechanisms for international spectrum allocation via treaties. At the 2000 World Radiocommunicaton Conference (WRC-2000), the ITU discussed spectrum and regulatory issues for advanced mobile applications, including third generation services. According to NTIA officials, the WRC-2000 and the ITU 1992 World Administrative Radio Conference (WARC-92) identified a total of 749 MHz of spectrum for use by sovereign countries wishing to implement IMT-2000 (also known as third generation mobile wireless), including the 1755 to 1850 MHz band. The United States agreed that it would study these bands domestically. Because of the significance of the services in this band of spectrum, the United States did not commit to providing additional spectrum for third generation systems. Subsequent to WRC-2000, the President issued an executive memorandum on October 13, 2000, that outlined a policy to encourage cooperation among FCC, NTIA, other federal agencies, and the private sector to determine if additional spectrum could be made available for third generation wireless systems. In addition, the memorandum specified that incumbent users of spectrum be treated equitably, taking national security and public safety into account. The memorandum directed the Secretary of Commerce to work cooperatively with FCC to develop a plan to select spectrum for third generation wireless systems and to issue an interim report on the current spectrum uses and the potential for reallocation or sharing of the bands identified at WRC-2000. The plan established spectrum sharing and relocation options to be studied for implementation in the years 2003, 2006, and 2010. FCC, in conjunction with NTIA, was expected to identify spectrum by July 2001, and auction licenses to competing applicants by September 30, 2002. Under the plan, NTIA studied the 1755 to 1850 MHz band and the FCC studied the 2500 to 2690 MHz band. Within the United States, the 1755 to 1850 MHz band is allocated on an exclusive basis to the federal government for fixed and mobile services and satellite control. DOD is the predominant user, although 13 other federal agencies operate extensive fixed and mobile systems in this band throughout the United States. To support NTIA’s efforts to study the 1755 to 1850 MHz band, DOD issued a final report in February 2001. The report was prepared for DOD by the Office of Spectrum Analysis and Management, which is part of the Defense Information Systems Agency. In addition, responsibility for assisting in the development of cost estimates associated with implementing study results was assigned to the Department’s Cost Analysis Improvement Group. The study addressed whether the Department could share or vacate this band. The Office of Spectrum Analysis and Management grouped military systems into five major categories. These categories included satellite operations, tactical radio relay, air combat training, weapons data links, and miscellaneous systems. Next, technical analyses were conducted to calculate the effects of potential spectrum interference between proposed commercial (third generation) and major military systems. For example, DOD calculated the potential interference between selected DOD satellite ground stations and anticipated third generation wireless systems (mobile and fixed-base stations). DOD also calculated the potential interference from third generation wireless systems on DOD satellite operations. In another example of technical analysis, DOD selected two air combat training ranges, which were considered representative of all training areas in the United States, for analysis of potential spectrum interference. Finally, the military commands and the operational communities responsible for each major category of systems used the results of the technical analysis to estimate the extent of any operational impacts on their missions. Then, acquisition program officers provided cost estimates for the options of sharing or vacating the band. DOD’s spectrum report concluded that loss of access to spectrum, above and beyond the spectrum already transferred as a result of OBRA 93 and BBA 97, would jeopardize DOD’s ability to execute its mission. Specifically, DOD concluded that it is unable to totally vacate the 1755 to 1850 MHz band until at least 2017 for space systems and at least 2010 for non-space systems. DOD also found that full band sharing is not feasible. However, DOD said that the compressed schedule, initiated by the presidential memorandum and the Department of Commerce’s plan, did not provide time for a thorough analysis and review of these complex issues. NTIA issued a spectrum report on March 30, 2001. Based in part on the DOD report, NTIA found that the unrestricted sharing of the 1755 to 1850 MHz band is not feasible and that any other sharing option would require considerable coordination between industry and DOD before third generation systems can be operated along with federal systems. Specifically, NTIA stated that there are several issues that must be resolved before any spectrum can be made available for reallocation in the 1755 to 1850 MHz band. These include reimbursement issues and the assurance of availability of comparable spectrum if DOD must surrender spectrum in this band. On June 26, 2001, the Chairman of FCC wrote to the Secretary of Commerce stating that additional time is necessary to allow the Commission and the executive branch to complete evaluations of the various options available for advanced wireless services. FCC sought additional time to identify and schedule the auction of spectrum for third generation wireless services. FCC stated in its letter that it wanted to work with the executive branch and appropriate congressional committees to come up with a revised allocation plan and auction timetable for third generation systems that will allow completion of necessary work. In a July 19, 2001, letter responding to the FCC request, the Secretary of Commerce directed NTIA to work with FCC to develop a new plan for the selection of spectrum for third generation mobile wireless systems. The Secretary asked that this work be coordinated with appropriate executive branch entities, such as the National Security Council, the National Economic Council, the Office of Management and Budget, and DOD. He also encouraged participants in this process to consider ways to achieve flexibility with respect to the statutory auction dates if flexibility is needed to implement the new plan. For example, the 1710 to 1755 MHz band that is being considered for third generation purposes is under a statutory deadline for the auction of licenses by September 2002. DOD’s February 2001 study does not provide a basis for decisions about reallocation of spectrum in the 1755 to 1850 MHz band. The study was constrained by lack of adequate guidance and by inadequate time and information. Thus, major considerations either were not addressed or were not adequately addressed in the final report. These considerations include complete technical and operational analyses of anticipated spectrum interference; cost estimates supporting DOD reimbursement claims, spectrum requirements supporting future military operations; programmatic, budgeting, and schedule decisions needed to guide analyses of alternatives; and potential impacts of U.S. reallocation decisions upon international agreements and operations. As a result, DOD’s analysis was limited in its ability to adequately describe and document potential technical, operational, and cost impacts should the Department be required to vacate the 1755 to 1850 MHz band or to share it with commercial users. In addition, neither the industry analysis nor the Air Force analysis of potential spectrum interference to DOD satellite systems provides an adequate basis for decisions about reallocation of the 1755 to 1850 MHz band from governmental to nongovernmental uses. The findings of both analyses, along with DOD’s analysis of satellite interference, are not reliable or complete. Before making reallocation decisions with a significant impact on national security and the economic welfare of the nation, the federal government should approach the alternatives with knowledge gained from a sound and complete analysis. Given an adequate amount of time, information, and guidance, a study of DOD’s spectrum needs and requirements could reduce operational and cost risks presented by critical spectrum reallocation decisions. The alternatives considered for making radio frequencies available to industry include DOD vacating the entire spectrum band or sharing all or part of the spectrum band with industry.