WASHINGTON—A new congressional report concludes more analysis is needed before reaching a decision on whether the U.S. Department of Defense should be forced to surrender the 1700 MHz band to mobile-phone companies for third-generation wireless systems, warning that a rush to judgment could jeopardize U.S. military readiness. The Government Accounting Office (GAO) report represents a potential setback for the mobile-phone industry because it could delay or scuttle the planned June 2002 auction of 3G licenses.