Tribal Nation Choices for
Telecommunications
Changes in federal telecommunication
policy has forced market-place competition and dynamic technology
choices for Tribal Nations. For the first time, our communities can
afford the basic information infrastructure necessary to spur small
business development, job creation, income generation, improve health
and education and give every household a chance to have a phone.
This workshop will
tell you how to finance a separate, local independent tribal telephone
system or how to work with your present local service provider to
extend more services into your community.
Specific
information provided on rights-of-way and easement practices, tribal
sovereignty, taxation, ways to lower a tribal government phone bill,
and different choices being selected by tribes.
Emphasis placed on
a tribal utility code as a way to set local priorities and guide
relationships with other governments that set policies which impact
tribal phone revenues and expansion authority.
Rural Utilities Service
Since 1949, the
U.S. Department of Agriculture’s Rural Utilities Service Program (RUS)
has worked with over 900 small phone companies to start or improve
services.
In 1971, Congress
created the Rural Telephone Bank (RTB) as a supplemental source of
public/private sector financing under the RUS telecommunications
program.
USDA asked Congress
to approve $625 million under several loan programs for RUS borrowers
for FY 1999 - $50 million for Hardship Loans, $175 million for RTB
loans, $100 million for Guaranteed Loans, and $300 million in loans
from the U.S. Treasury. The Hardship Loans carry a 5% interest rate
or less for unusual circumstances. Interest rates for the other loans
are the same or similar to the prevailing U.S. Treasury Rate.
The telephone penetration rate throughout Indian
Country ranges from approximately 25% to 75%.
Federal Communication Commission
Since the 1930’s
the FCC has promoted service to all households that desire phones.
With the break-up of AT&T in the early 1980’s, the FCC set-up ways to
ensure that consumer rates for local telephone service would remain
affordable in rural, insular, and high cost areas. Support mechanisms
for schools, libraries, hospitals, and clinics were added in 1996.
FCC universal service components include:
Link-up America — Off-sets up
to $30.00 of initial hook-up charge for low-income subscribers. The
FCC asks local companies to offer a deferred payment plan for
remaining costs.
Lifeline Assistance Program —
Waives $3.50 federal subscriber charges per month.
Schools & Libraries Discount —
Up to $1.3 billion per year based upon economic
need. Discount ranges from 20% - 90% for telecom services.
Rural Healthcare Providers Discount —
Up to $400 million per year
based on comparison to nearest urban area.
Under the 1996 Act,
the FCC has initiated new policies to create a dynamic, competitive
marketplace by issuing bandwidth spectrum licenses which has driven
new wireless technologies to deliver quality voice and data services.
Small Phone Company Facts
Nationally, 1300
small telephone companies operate 5% of the nation’s telephone lines
and serve 10 million subscribers.
A typical small
phone company has 5,600 access lines and employs 26 people. Forty-two
percent of their central offices deploy fiber optics technology and
93% have digital switches.
On average, 50% of
a small telephone company’s revenue comes from toll charges paid by
companies for long distance connections.
Tuesday, July 28
The FCC and RUS
will explain the federal resources
available to tribes to build their own company or how to improve
services through an existing provider.
The agencies will
discuss the impact of the 1996
Telecommunications Act on the marketplace, new technology use,
universal service programs, and the future expansion rate of small
companies and viability of new starts.
Following the
federal panels, the Bureau of Indian Affairs, The Center for Applied
Research, and a tribal expert will discuss the environmental
guidelines and regulations for rights of way,
easement practices, and taxation of utilities on tribal lands.
Legal experts will
explain why a tribal utility code is
important for developing a basic information system and in working
with existing local and long distance providers.
Closing session is
a tribal, legal, and industry panel discussion on
howfederal and state governments affect tribal
and other local service providers revenue base and management.
Wednesday, July 29
AISES engineers will present a telephone utility
development case study with an emphasis
on tribal economic development considerations. Session will include
assessment of tribal community and technical needs.
Availability of
General Service Administration long
distance rates for all tribal entities will be discussed around a
Navajo case study which highlights problems and solutions when
multiple parties are involved. Panel includes Navajo Indian Area
Health Service, AT&T and Sprint, the Bureau of Indian Affairs and
Indian Health Service Offices of Information Resource Management.
The
National Telephone Cooperative Association
will share how its 500-member group works to promote improved local
phone services within the industry and how their concerns differ from
large companies. Also discussed is how a small phone company differs
from a cooperative organization which is owned by the community.
Using a
roundtable format, speakers from
diverse program areas will discuss how their tribe or program has
pursued telephone utility ownership; success in working with local
providers; how to prioritize tribal infrastructure improvements; and
availability of funding sources.
Breakout Sessions — Participants will
identify and rank major problem areas or concerns related to improving
telecommunication capacity, tribal government roles, federal/state
financing and utility policies, and access to private sector capital
and technology.
Thursday, July 30
Morning workshop on
FCC wireless service program for digital
spectrum licenses; ability to
partition spectrum to build out license holders respective service
area; and availability of venture capital. Special information
provided on new available local multi-point distribution
services. This technology offers a complete range of
services including voice, video, and data. A solution for remote
locations, difficult terrain, or as a local loop bypass.
Workshop Hours
The workshop is
scheduled for 2 ½ days starting at 8:30 a.m. each morning. Tuesday and
Wednesday sessions last until 5:00 p.m. Thursday’s session will
adjourn by 12:30 p.m. Coffee breaks provided. On-site registration on
Monday from 4:30 to 8:00 p.m. and from 7:00 a.m. to 8:15 a.m. on
Tuesday.
Proceedings
Session Proceedings will be available
for distribution to the workshop participants. The proceedings will be
used to advance policy, and enhance economic development opportunities
for American Indians.
Presenters Drum Roll
Carl Artman,
Executive Vice-President, Airadigm Communications
Cecil Antone, Lieutenant Governor, Gila River Indian Community
Richard Askoff, Deputy General Counsel, Universal Service
Administration Company
Ed Cameron, Acting Associate Administrator, Rural Utilities Service,
USDA
Steve Campbell, Center For Applied Research
Ken Chandler, Director, Southwest Telecom Program, RUS, USDA
David Cosson, Attorney, Kraskin, Lesse, and Cosson
Tony Davis, Navajo Area Office, Indian Health Service
Doug Dawson, Principal, Competitive Communications Group
Bill England, Attorney, Rural HealthCare Corporation
Raymond Etcitty, Attorney, Navajo Nation
L. Marie Guillory, Vice-President, Legal & Industry, NTCA
Paulette Hansen, Executive Director, American Indian Information
Network
Nora Helton, Chairwoman, Ft. Mohave Indian Community,
Sandra Holland, AT&T
Theresa Hopkins, IT Coordinator, Navajo Nation
Kathy Hughes, Treasurer, Oneida Nation of WI
Barbara Leitchfield, Colville Tribe
Rhonda McKenzie, President & CEO, McKenzie Telecommunications Group
Inc.
Wayne Nakai, Navajo Nation
Gerald Nordland, MIS Director, Hopi Nation
Penny Pickett, Entreprenuerial Services Director, Telecom Development
Fund
Greg Scott, Commissioner, MN Public Utility Commission
Parker Sando, Realty Specialist, BIA
Scott Taylor, Law Professor, UNM
Carolyn Thomas, Federal Telecom Services, General Services
Administration
Gloria Tristani, Commissioner, Federal Communication Commission
Bill Tucker, Principal, Competitive Communications Group
Greg Waddell, Director, Schools and Libraries Corporation
JD Williams, General Manager, CRST Telephone Authority
Madonna Yawakie, Secretary, MN AISES Professional Chapter, NAtec
Inc., President
Mel Yawakie, Pres., MN AISES Professional Chapter & AISES Board of
Directors
Amy Zoslov, Wireless Service Bureau, FCC
Welcome
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Agenda
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Proceeding Excerpts
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Attendees
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Breakout Session
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Photos
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