The interim report on 3G wireless deployment by the Commerce Department's National Telecommunications and Information Administration (NTIA), along with a companion report by the Federal Communications Commission, are being portrayed by the outgoing Clinton administration as a key step toward resolving a lengthy dispute over spectrum allocation for 3G wireless services.

"This initial study provides the first step in evaluating the impact on the incumbents in the bands, the potential for sharing with 3G systems and the utility of segmenting the band to accommodate both 3G and incumbent systems," said Gregory Rohde, assistant secretary of commerce for communications and information, and the NTIA administrator.

"This interim report indicates that segmentation and sharing are possibilities in the 1,755-to-1,850-MHz band," Rohde added. "The industry and the federal agencies need to begin exploring these possibilities as well as possible re-allocation options."

The Commerce study found that spectrum sharing between 3G services and current government users may be feasible "under certain conditions." Policy makers will continue assessing whether to reallocate spectrum within the 1,755-to-1,850-MHz band for 3G services. The reallocation issue is not expected to be settled until a final report is issued in March 2001.

According to the administration's current deployment plan, the FCC will issue a notice of proposed rulemaking on Dec. 31 on U.S. spectrum for 3G wireless services. The FCC and NTIA, which share spectrum management responsibilities, will then issue their final reports on 3G deployment in March.

"Identification of spectrum by the FCC in coordination with NTIA will be made by July 2001," the Commerce Department said.

Observers said regulators must still sort out conflicting claims by government agencies and industry for additional spectrum. One problem, U.S. officials have said, is that spectrum allocated by European regulators for 3G services has been claimed by the U.S. Department of Defense and the National Aeronautics & Space Administration (NASA).

Among other uses, the 1,755-to-1,850-MHz band targeted for 3G services is currently used by federal agencies for tracking spacecraft and receiving telemetry data, microwave communications, military tactical radio relay and guiding precision munitions.