A discussion of H.R. 1407, a bill to establish procedures to improve the allocation and assignment to the electromagnetic spectrum centered on the current policy of allocating portions of the spectrum through lotteries and auction. This report includes a copy of the bill, the text of testimony presented and materials submitted for the record, and transcriptions of discussions at the hearing. Testimony was presented by: (1) Robert Clemons, on behalf of the National Telephone Cooperative Association; (2) James Dale Davidson, chairman of the National Taxpayers Union; (3) Robert A. Mosbacher, Secretary of the Department of Commerce; and (4) Lawrence Rick, on behalf of the Associated Public-Safety Communications Officers. Materials were submitted for the record by the Air Transport Association of America; the Association for Maximum Service Television; the Commerce Department (responses to subcommittee questions by Robert Mosbacher); the Federal Communications Commission (a statement by the chairman, Alfred C. Sikes); the Markle Foundation (a statement by Henry Geller, communications fellow); and the National Association of Broadcasters. (ALF)