Not all spectrum has equal value. NTIA’s Processes for Managing Federal Spectrum Lack Governmentwide Focus and Accountability

		NTIA’s Spectrum Management Efforts

As the federal agency authorized to develop national spectrum policy,  NTIA has been directed to conduct several projects focused on reforming  governmentwide federal spectrum management and promoting efficiency  among federal users of spectrum; however, we reported in 2011 that its  efforts in this area had resulted in limited progress toward improved  spectrum management. For example, the plan does not identify or include quantitative  governmentwide data on federal spectrum needs. NTIA Focuses on Interference Mitigation Rather than on Best Use of Spectrum across Government

NTIA’s primary spectrum management operations include authorizing  federal frequency assignments and certifying spectrum-dependent  equipment for federal users; however, these processes are primarily  focused on interference mitigation as determined by IRAC and do not  focus on ensuring the best use of spectrum across the federal  government. NTIA’s Current Data Management System Is of Limited Usefulness

NTIA’s data management system is antiquated and lacks transparency  and internal controls. NTIA Has Taken Steps to Identify Spectrum for Future Wireless Broadband Use

		NTIA Efforts to Identify Spectrum for Broadband

In response to the government initiatives to make a total of 500 MHz of  spectrum available for wireless broadband, in 2010 NTIA (1) identified  115 MHz of federally allocated spectrum to be made available for wireless  broadband use within the next 5 years, referred to as the Fast Track  Evaluation, and (2) developed an initial plan and timetable for repurposing  additional spectrum for broadband, referred to as the 10-Year Plan. For  each of these bands, NTIA reviewed the number of federal frequency  assignments within the band, the types of federal operations and  functions that the assignments support, and the geographic location of  federal use. Additionally, NTIA will  collaborate with FCC to analyze 835 MHz of spectrum that is currently  located in bands that are shared by federal and nonfederal users. Some Users Lack Incentives and Face Several Barriers to Sharing Spectrum, and Cannot Easily Identify Available Spectrum to Share

		Some Users Lack Economic Incentives to Share Spectrum

While federal spectrum users often share spectrum among themselves,  they may have little economic incentive to otherwise use spectrum  efficiently, including sharing it with nonfederal users. In the case of federal spectrum  users, obtaining new spectrum assignments may be difficult, so an  agency may have an incentive to conserve and use the spectrum it  currently has assigned to it or currently shares efficiently, but the extent of  that incentive is likely weaker than if the agency had had to pay a market  price for the all of their spectrum needs. In addition to that time, NTIA officials said  that IRAC’s evaluation of potential harmful interference could take  months. Users May Be Unable to Easily Identify Spectrum Suitable for Sharing

Besides lacking incentives and overcoming other barriers, users may also  have difficulty identifying spectrum suitable for sharing because data on  available spectrum is incomplete or inaccurate, and information on some  federal spectrum usage is not publicly available. Federal advisors and experts we talked to  identified several options that could provide incentives and opportunities  for more efficient spectrum use and spectrum sharing by federal and  nonfederal users, which include, among others: (1) assessing spectrum  usage fees; (2) expanding the availability of spectrum for unlicensed  uses; and (3) increasing the federal focus on research and development  of technologies that can enable spectrum sharing and improve spectral  efficiency. In our April 2011 report, we recommended that NTIA (1) develop an  updated plan that includes key elements of a strategic plan, as well as  information on how spectrum is being used across the federal  government, opportunities to increase efficient use of federally allocated  spectrum and infrastructure, an assessment of future spectrum needs,  and plans to incorporate these needs in the frequency assignment,  equipment certification, and review processes; (2) examine the  assignment review processes and consider best practices to determine if  the current approach for collecting and validating data from federal  agencies can be streamlined or improved; and (3) establish internal  controls for management oversight of the accuracy and completeness of  currently reported agency data. Options to address  these issues in turn create new challenges, and may require further  study.
Why GAO Did This Study

Demand for spectrum is increasing rapidly with the widespread use of wireless broadband devices and services. However, nearly all usable spectrum has been allocated either by NTIA for federal use or by the Federal Communications Commission (FCC) for commercial and nonfederal use. Federal initiatives are under way to identify federal spectrum that could be repurposed or possibly shared by federal users or wireless broadband providers and other nonfederal users. This statement discusses how NTIA manages spectrum to address governmentwide spectrum needs and the steps NTIA has taken to repurpose spectrum for broadband. As part of an ongoing review, the statement also discusses preliminary information on the factors that prevent spectrum sharing and actions that can encourage sharing and efficient spectrum use. This testimony is based on GAO's prior work on federal spectrum management and ongoing work on spectrum sharing. GAO analyzed NTIA processes, policies and procedures, and interviewed relevant government officials, experts, and industry stakeholders.

What GAO Found

The National Telecommunications and Information Administration (NTIA) is responsible for governmentwide federal spectrum management, but GAO reported in 2011 that NTIAs efforts in this area had been limited. In 2003, the President directed NTIA to develop plans identifying federal and nonfederal spectrum needs, and in 2008, NTIA issued the federal plan. GAO found it did not identify governmentwide spectrum needs and did not contain key elements and conform to best practices for strategic planning. Furthermore, NTIAs primary spectrum management operations do not focus on governmentwide needs. Instead, NTIA depends on agency self-evaluation of spectrum needs and focuses on mitigating interference among spectrum users, with limited emphasis on overall spectrum management. Additionally, NTIAs data management system is antiquated and lacks internal controls to ensure the accuracy of agency-reported data, making it unclear if reliable data inform decisions about federal spectrum use. NTIA is developing a new data management system, but implementation is years away.
Despite these limitations, NTIA has taken steps to identify spectrum that could potentially be made available for broadband use. For example, in 2010 NTIA evaluated various spectrum bands and identified 115 megahertz of spectrum that could be repurposed within the next 5 years. In doing so, NTIA worked with a special steering group consisting of the Assistant Secretaries with spectrum management oversight in agencies that were the major stakeholders in the spectrum bands under consideration. For each of the identified bands, NTIA reviewed the number of federal frequency assignments within the band, the types of federal operations and functions that the assignments support, and the geographic location of federal use.
In addition to efforts to repurpose spectrum, industry stakeholders have also suggested that sharing spectrum between federal and nonfederal users be considered to help make spectrum available for broadband. Our ongoing work has identified several barriers that limit sharing. Primarily, many users may lack incentives to share assigned spectrum. Typically, paying the market price for a good or service helps to inform users of the value of the good and provides an incentive for efficient use. But federal agencies pay only a small fee to NTIA for spectrum assignments, and may, in some contexts, have little incentive to conserve or share it. Federal agencies may also have limited budgets to upgrade to more spectrally-efficient equipment that would better enable sharing. Nonfederal users are also reluctant to share spectrum. For instance, license holders may be reluctant because of concerns that spectrum sharing could encourage competition. A lack of information on federal spectrum use may limit users ability to easily identify spectrum suitable for sharing.
GAOs ongoing work suggests that some actions might provide greater incentives and opportunities for more efficient spectrum use and sharing. These actions could include assessing spectrum usage fees to provide economic incentive for more efficient use and sharing, expanding the availability of unlicensed spectrum, and increasing the federal focus on research and development of technologies that can enable spectrum sharing and improve spectral efficiency. However, all of these actions also involve challenges and may require further study.