Spectrum allocation involves segmenting the radio spectrum into bands of  frequencies that are designated for use by particular types of radio services  or classes of users, such as broadcast television and satellites. An  example of this is the unexpectedly rapid growth of mobile phone use in  the United States. However, as demand for this limited resource increases, particularly with  the continuing emergence of new commercial wireless technologies, NTIA  and FCC face serious challenges in trying to meet the growth in the needs  of their respective incumbent users, while accommodating the needs of  new users. Methods for Allocating Spectrum Face Difficulties and Are Not Guided by a Coordinated National Plan

Since nearly all of the usable radio spectrum has been allocated already,  accommodating more services and users often involves redefining  spectrum allocations. The current divided U.S. spectrum management  structure has methods for allocating spectrum for new uses and users of  wireless services, but these methods have occasionally resulted in lengthy  negotiations between FCC and NTIA. In addition, both agencies (along with industry)  are involved in preparing the United States’ unified position for World  Radiocommunication Conferences (WRCs). Some Experts Have Raised Questions about Adequacy of Current Procedures

We obtained conflicting views on the effectiveness of the U.S. preparatory  process for WRCs. Department of State and FCC officials told us that the  work of FCC and NTIA with their respective constituencies and with each  other in preparation for a conference leads to U.S. positions on WRC  agenda items that are thoroughly scrutinized, well reasoned, and generally  supported among federal and nonfederal parties. Federal Officials Said Activities to Encourage Efficient Federal Spectrum Use Are Hindered by Staffing and Resource Problems

NTIA is required to promote the efficient and cost-effective use of the  federal spectrum that it manages—over 270,000 frequency assignments as  of June 24, 2002—“to the maximum extent feasible.” Accordingly, as  accountability measures, NTIA has directed federal agencies to use only as  much spectrum as they need and has established several processes and  activities to encourage efficient spectrum use. One spectrum manager we  interviewed stated that Spectrum XXI has greatly reduced the amount of  time and work involved in applying for a frequency assignment. Following the 2003 WRC, the Secretary of State, the Secretary of  Commerce, and the Chairman of the Federal Communications  Commission should jointly review the adequacy of the process used to  develop and promote the U.S. position, including the separate processes  used by FCC and NTIA, and the short tenure of the head of delegation,  and prepare a report containing any needed recommendations for  making improvements. However, it was not until  1927 that a compromise was reached on a framework for the management  of radiofrequency spectrum by the federal government. A  departmental order was issued shortly thereafter forming the National  Telecommunications and Information Administration (NTIA).
What GAO Found

The radiofrequency spectrum is the medium that enables wireless communications of all kinds, such as mobile phone and paging services, radio and television broadcasting, radar, and satellite-based services. As new spectrum-dependent technologies are developed and deployed, the demand for this limited resource has escalated among both government and private sector users. Meeting these needs domestically is the responsibility of the Department of Commerce's National Telecommunications and Information Administration (NTIA) for federal government users and the Federal Communications Commission (FCC) for all other users. The current legal framework for domestic spectrum management evolved as a compromise over the questions of who should determine how spectrum is allocated among competing users and what standard should be applied in making this determination. Current methods for allocating spectrum face difficulties, and FCC and NTIA's efforts are not guided by a national spectrum strategy. Since nearly all of the usable radio spectrum has been allocated already, accommodating more services and users generally involves redefining current radiofrequency allocations. One method used by FCC and NTIA is to increase the amount of spectrum that is designated for shared use, so that additional types of services or users may be placed within a particular frequency allocation. Another method, called band-clearing, involves relocating a service or user from one area spectrum to another in order to make room for a new service or user. The challenges the United States faces in preparing for World Radiocommunication Conferences, where decisions are made regarding the global and regional allocation of spectrum, have raised questions about the adequacy of the United States' current preparatory process. Under the current structure, FCC and NTIA develop positions on agenda items through separate processes that involve the users of the spectrum they manage. NTIA has several oversight activities to encourage accountability and efficient use of the spectrum by federal agencies, but federal officials stated that the effectiveness of these activities is hindered by staffing and resource shortages. Specifically, NTIA has directed federal agencies to use only as much spectrum as they need and has established frequency assignment and review processes that place primary responsibility for promoting efficiency in the hands of the agencies. As an accountability measure, NTIA requires that agencies justify their initial need for a frequency assignment and periodically review their continued need for the assignment, generally every 5 years.