The proper allocation of spectrum between the federal users and the private sector has become a central issue. The author describes how the National Telecommunications and Information Administration (NTIA) ensures that federal spectrum is used efficiently and continues to identify spectrum for reallocation to the private sector. The NTIA also promotes policies to ensure efficient spectrum usage by the private sector. For example, NTIA was one of the principal proponents urging Congress to give the FCC auction authority. The NTIA has also proposed a spectrum auction methodology to the FCC that would generate higher auction revenues and a more efficient assignment of licenses. NTIA believes that it can make additional contributions in this area to enhance the future revenue potential of the auction process. He emphasizes that to evaluate fully the potential for raising revenue from reallocation of additional federal spectrum to the private sector, one must understand the difficult trade-offs involved. Federal agencies use spectrum to provide critical public services, and, there is virtually no prime spectrum lying fallow. In addition, international treaty allocations and obligations must be taken into account.