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K. Dane Snowden
Chief, Consumer & Governmental Affairs Bureau
Federal Communications Commission

Affiliated Tribes of Northwest Indians (ATNI)
50th Annual Conference
September 23, 2003

Good morning. It gives me great pleasure to be a part of the Affiliated Tribes of Northwest Indians’ celebration of its 50th anniversary. I want to thank Valerie Fast Horse for inviting me to attend and speak at this important Conference.

Fully a half-century ago, tribal leaders in the Northwest formed this organization to promote tribal sovereignty and self-determination. Today, your work has grown to represent the interests of 54 northwest tribal governments, whose commitment to furthering your goals is well recognized and respected. So thank you for allowing me to be a part of your important work and congratulations on your achievement.

Before I begin my remarks, I would like to introduce other members of the FCC who have accompanied me today. Kris Monteith is the Deputy Bureau Chief for Consumer Outreach and Intergovernmental Affairs, Sue McNeil is Special Counsel for Intergovernmental Affairs, and Geoffrey Blackwell is a Senior Attorney and Liaison to Tribal Governments. We are also joined by Jim Epik of the Commission’s Enforcement Bureau. Jim is Assistant Chief of the Telecommunications Consumers Division in Enforcement Bureau and as such directs the Commission’s efforts to ensure carrier outreach onto tribal lands.

Today I want discuss the partnership between the FCC and ATNI, which holds a bright promise for the future, as we work together to ensure that American Indians enjoy the benefits of the telecom revolution. The FCC is committed to that partnership, as recognized in our June 2000 Policy Statement reaffirming the Commission’s recognition of tribal sovereignty and the trust relationship. As that Policy Statement establishes, we value a government-to-government relationship with federally recognized Indian tribes. And consultation is our principal means of identifying and resolving issues relevant to Indian Country.

Many of you may not be completely familiar with the FCC and what it does, so I will begin this morning by giving you a brief overview of the FCC - highlighting our purpose, organization and functions.

The FCC was created by the Communications Act of 1934. As stated in the Act, our purpose is "to make available…to all people …a rapid, efficient, nationwide and worldwide wire and radio communications service with adequate facilities at reasonable charges."

In 1996, Congress passed the most significant amendment to the 1934 Act in over 30 years ---by passing the Telecommunications Act of 1996. The 1996 Act directed the FCC and the states to establish "predictable and sufficient" mechanisms to ensure availability and delivery of affordable and "reasonably comparable" telecom services to everyone. This includes low-income consumers, consumers in rural, insular, and high-cost areas, eligible schools and libraries, and rural health care providers.

Again, the Act emphasizes the broad purposes behind the creation of a federal agency to regulate communications: which of course is to ensure that everyone, regardless of income or location, has access to basic telecommunications services, which today are no longer a luxury, but a necessity.

Different Bureaus and Offices in the FCC promote these broad purposes from different angles. I have the honor to head the Consumer & Governmental Affairs Bureau. CGB has several functions, including creating and reviewing consumer policy, providing education and outreach about Commission programs and activities, and providing a liaison with other government entities – including tribal governments, industry, and consumer groups. In general, the bureau works with consumer organizations and government agencies concerned with FCC regulatory activities. It arranges briefings and seminars for educational institutions, consumer organizations, and other groups. One of the bureaus most important functions is to serve as the FCC’s liaison to tribal governments.

Turning to other bureaus, the FCC’s Wireline Competition Bureau is responsible for the FCC's policies and rules concerning long distance and local wireline telephone service. Of particular interest, The Wireline bureau oversees universal service programs like Lifeline/Link-Up, the E-rate, rural health care, high-cost fund programs.

The Wireless Telecommunications Bureau is responsible for all FCC domestic wireless telecom programs and policies. These programs include mobile phones, paging, public safety, and other commercial and private communications services. The Wireless Bureau is also responsible for spectrum auctions, including rules on bidding credits – which I’ll discuss at more length later.

The Enforcement Bureau is responsible for enforcing the Communications Act, as well as the FCC’s rules, orders and authorizations. And our International Bureau works on international policy and spectrum rulemaking functions, including satellite licensing.

With this brief overview in mind, I want to talk today about some of the things the FCC is doing to promote telecom service in Indian Country. While I could talk about the FCC for several hours, I will spare you and only touch on the highlights. This morning I want to briefly address: outreach and education, universal service, and auction bidding credits. I will also briefly discuss our consultation with tribes on historic preservation issues.

CGB Outreach/ITI Activities.

The umbrella term we use to describe our outreach activities to American Indians is Indian Telecommunications Initiatives (ITI), which encompasses all of our outreach efforts in Indian Country. In meetings, tours, conferences, rulemakings, and other activities, the FCC dedicates many senior staff members to handling our liaison work to the tribes – which is an indicator of the importance we place on American Indian issues. Our outreach to American Indians has received support at the highest levels of the Commission. Starting with our Chairman, Michael Powell, who gave the Federal Agencies’ Day keynote at the September 2002 National Summit on Emerging Tribal Economies held in Phoenix, AZ. In addition, other Commissioners have had meetings and attended Native American-sponsored conferences.

All of our ITI activities recognize and acknowledge that different tribes are in different stages of economic development, particularly where telecommunications access is concerned. ITI also includes regional workshops to provide "how to" information on telecom services and telecommunications infrastructure development. These workshops are tailored to the particular needs and interests of the tribes in that region.

Our most recent ITI meeting was in July of this year, in Reno, NV. CGB sponsored the Reno ITI Workshop and Roundtable Discussion, which was attended by over 100 attendees from over 25 tribes throughout the US --- from North Carolina to Alaska. Some of you here today also attend the Reno ITI Workshop. Discussions centered on issues of particular importance to the tribes, including infrastructure feasibility analysis; - developing business strategies; - financial programs such as universal service and USDA Rural Utilities Services loans; - successful tribal telecom business strategies; - and public safety and homeland security issues.

ITI has 3 goals that we seek to achieve through collaboration and education. First and foremost our goal is to increase the telephone penetration rate or the number of people who have telecommunications services in Indian Country. To this end, naturally, we must promote telecom infrastructure deployment - that is, the installation of telecommunications equipment necessary to provide telecom services. We also aim to inform consumers on tribal lands nationwide about federal programs that provide discounts for telecom services.

Our Reno workshop was highly successful and well attended, and in the future, we are planning to go to other parts of the country. We are discussing with the leadership of ATNI the possibility of holding a regional workshop in conjunction with ATNI’s February Winter Meeting in Portland, OR. We look forward to your input.

As I mentioned, one of ITI's primary goals is education – which dovetails with CGB's consumer mission overall. In that vein, we have developed specific publications directed to Native American issues. Our ITI booklet, brochure, and fact sheet are some of the publications that were created specifically for the American tribes. I have brought copies with me for those who are interested. I recommend our Expanding Telecommunications Access in Indian Country booklet and our Get-Connect: Promoting Telephone Subscribership in Indian Country factsheet. I have also brought copies of the FCC's Tribal Policy Statement. In addition, I would like to encourage you to visit the FCC’s Indian Web page. This site has an overview of our extensive activities, including recent press releases, updates on rulemakings, notices of meetings and of course speeches. The web site is a good source of all of the things that we have in the works and a way to keep up to date on telecom issues affecting Indian Country.

In addition to our regional workshops and publications, CGB also regularly attends meetings and conferences – such as this one – that are sponsored by other organizations. FCC senior staff have attended meetings, such as the February National Congress of American Indians 59th Annual Session held in Washington, DC. We have also held meetings to discuss telecom issues in Indian Country, such as our July 2002 tour of Chehalis Indian Reservation and meeting with Chehalis Business Council and Affiliated Tribes of Northwest Indians-Economic Development Corporation. And just two days ago, we were in the great states of Arizona and New Mexico conducting consultation meetings on Navajo Nation and Hopi Reservations.

The FCC’s Cultural Resources Officer and my senior tribal attorney met earlier this past May in New Mexico with the Taos Pueblo Governor and Taos Pueblo officials and representatives as part of ongoing National Historic Preservation Act Section 106 Tribal Consultation. The Commission has also undertaken a rulemaking that seeks public comment on a draft Nationwide Programmatic Agreement, the purpose of which is to streamline the review process for tower constructions under the National Historic Preservation Act. I’ll say more about this later.

In addition to our educational efforts outside the Commission, I should add that the Consumer & Governmental Affairs Bureau has begun training other FCC staff in tribal history, culture, law, and trust relations. This is a part of our deliberative strategy to share what we have learned from you, with our colleagues at the FCC. For example, we conducted a seminar session on "Building Effective Relationships with Tribal Governments" for Commission staff involved in matters affecting tribal interests.

Another important avenue through which we address tribal issues is our Consumer Advisory Committee or (CAC). In fact, Cheryl Johnson is a member of the CAC, as are Vernon James and Linda West; all three are representing Native American interests. The mission of the CAC is to make recommendations to the FCC regarding consumer issues within the jurisdiction of the Commission. CAC also facilitates the participation of consumers in proceedings before the Commission. This includes people with disabilities and underserved populations, such as Native Americans and persons living in rural areas. At our recent July meeting of CAC, participants discussed issues including Telemarketing, homeland security, broadband regulation, wireless local number portability and E9-1-1 service.

In addition to ITI and CAC, our bureau also oversees the Intergovernmental Advisory Committee (formerly LSGAC), another liaison between the FCC and state, tribal and local governments. In its 6 years of existence, the 15-member committee has provided an important perspective and continues to be a valuable resource to the Commission. In July, the Commission modified its rules to further enhance the Committee’s role in bringing the views of local, state and tribal governments to the Commission. Of particular importance to ATNI and its members is that we increased the number of positions on IAC for tribal representatives from 1 to 3. The Commission is currently seeking nominations of state, local and tribal elected or appointed officials. The deadline for nominating individuals is September 29th and we welcome your input.

Universal Service.

In 1934 Congress created the FCC and for the past 70 years, promoting universal service was one of its key principles, and it continues to guide much of what we do today. "Universal service" simply means that everyone, regardless of income or place of residence, should have access to essential telecom services. Universal service lies at the core of the FCC’s mission and the advancement of universal service on tribal lands is a major policy goal of this Commission.

Many of you may be familiar with the provisions of the universal service program, but for those that are not, let me give a quick overview. Universal service has several main components: - first, Lifeline/Link-Up, which substantially reduces the cost of basic local phone service for income-eligible customers on tribal lands; - second, e-rate for schools and libraries ensures that all eligible schools and libraries have affordable access to modern telecom services, regardless of location or economic circumstances; - and third, the Rural Health Care program encourages the growth of telehealth in rural areas by making telecom rates for public and non-profit rural health care providers nearly the same as those paid in urban areas.

Outreach to Indian Country on universal service is a critical component of CGB outreach efforts. Last May, as part of its ongoing dialogue with the National Congress of American Indians Telecommunications Subcommittee, the FCC released a study on telephone subscribership on American Indian Reservations and Off-Reservation Trust Lands, presenting subscribership statistics based on the 2000 Decennial Census.

Statistics from the 2000 Decennial Census estimated that 67.9% of all American Indian households living on American Indian Reservations and Off-Reservation Trust Lands had telephone service. Comparable data from the 1990 Decennial Census estimated 46.6% of such American Indian households had telephone service. Thus, some progress has been made but much remains to be done: 67.9% is not an acceptable statistic. We must collectively redouble our efforts.

The Commission has also been looking at a number of universal service issues in our rulemaking proceedings. In May of this year, for example, we addressed the requests of several petitioners to reconsider rules to provide additional, targeted universal service support to low-income consumers on tribal lands and to establish a framework for the resolution of eligible telecommunications carrier (ETC) designations.

We also clarified the Commission’s rules regarding the qualification criteria for enhanced Lifeline and Link-Up service. In that rulemaking we also requested further comment on potential modifications to our rules regarding the availability of enhanced Federal Lifeline and Link-Up assistance to qualifying low-income consumers living "near reservations."

The Commission also asked for comment on the extent to which rural telephone companies and other entities seeking to serve rural areas have opportunities to acquire spectrum and provide spectrum-based services. The comment period expired early this year, and we are preparing a report that will help develop a record on these matters to determine the extent to which the Commission has achieved these statutory goals. Based on the record developed in this proceeding, we will determine whether it would be appropriate to revise existing policies or adopt new policies to promote more extensive provision of spectrum-based services to rural areas and the acquisition of spectrum by rural telcos. As you can see this is a fluid process with regular review to gauge our effectiveness. We encourage your active participation in these proceedings all along the way.

Auction Bidding Credits.

The FCC’s Wireless Bureau is responsible for running our spectrum auctions. These auctions represent one of the ways in which the Commission promotes deployment of telecom services in Indian Country.

Let me briefly review the role of auctions, which were created under Congressional authority granted to the Commission in 1993. Overall, the FCC is responsible for licensing spectrum in the public interest in order to foster technological innovation, promote competition, and promote consumer welfare.

The spectrum auctions were designed to award spectrum to the applicant that values it most, thus increasing the likelihood that spectrum will be used productively. In addition, spectrum auctions are a means of compensating the public for the use of a public resource.

Part of the purpose of auction structure was always to provide incentives for new entrants by means of bidding credits. Bidding credits are offered to small businesses participating in auctions, and there are particular credits for entities that serve Native American tribes. Since cost of spectrum is always a consideration, we can also provide information to tribes on who license holders are, for the purposes of partitioning and disaggregation.

In March of this year, The Commission released an order clarifying earlier rules that provided incentives for wireless carriers to serve individuals living on tribal lands. These rules provided incentives to deploy facilities and provide service to tribal areas that have a telephone service penetration rate below 70%.

We continue to seek ways in which we can encourage greater participation in the existing tribal lands bidding credit program, and we also believe that consideration should be given to extending the program to underserved tribal communities that are situated on non-tribal lands adjacent to tribal lands. Late last year, for example, we issued a Notice requesting comment on the effectiveness of current regulatory tools in the delivery of spectrum-based services to rural areas.

National Historic Preservation/National Environmental Policy.

Finally, I wanted to point to another important Commission program that has particular effect on Indian Country. As I mentioned earlier, the FCC has undertaken a rulemaking focused on streamlining the review process for tower constructions and certain other Commission undertakings under Section 106 of the National Historic Preservation Act.

Section 106 of the Act requires federal agencies to consider the effects of their undertakings on historic properties. The application of Section 106 to siting communications towers can be burdensome. Representatives of the FCC, the Advisory Council on Historic Preservation, and the National Conference of State Historic Preservation Officers have all met to create a draft Nationwide Programmatic Agreement. The purpose is to establish exclusions from the Act’s provisions and provide standards and procedures for the applicable towers and collocations. In addition to general public comment on the Agreement, we especially seek direct tribal input and consultation. This is key, as we do not want to work in a vacuum.

We are also responsible for implementing the provisions of the National Environmental Policy Act or NEPA, which is the basic national charter for protection of the environment. NEPA and the regulatory guidelines established by the Council on Environmental Quality, which implemented the Act, require all Federal agencies to take into account environmental consequences when making decisions that could be considered "major federal actions." As a licensing agency, the Commission complies with NEPA by requiring our licensees to review their proposed actions for environmental consequences. More information about NEPA can be found on the FCC’s Indian web site.

Conclusion.

Overall, I believe the Commission has made progress in promoting its goal of bringing quality, affordable telecommunications services to all Americans. In fulfilling our government-to-government responsibility we want to continue listening, learning and developing trust with tribes so that we can create and refine policies that promote telecom service in Indian country. The Federal Communications Commission remains committed and focused on the goal of working with all sovereign tribal governments to promote telecommunications deployment in Indian Country.

Once again, I want to congratulate you on reaching a significant milestone in ATNI’s history. I hope your next 50 years will bring you much success. My only regret is that I cannot stay and celebrate with you for long today, as I must catch a flight and continue tribal visits with the Alaskan Native Villages.

Thank you again for inviting me to be with you today, and all the best for a successful conference.

last reviewed/updated on 10/03/03



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