Most tribal  lands are located in rural or remote locations, though some are near  metropolitan areas. Tribal Telephone Subscribership Rate is Substantially Below the National Level and Internet Subscribership Is Unknown

As of 2000, the telephone subscribership rate for Native American  households on tribal lands had improved since 1990, but was still  substantially below the national rate, while the rate for Internet  subscribership on tribal lands was unknown due to a lack of data. According to data from the 2000 decennial census, about 69 percent of  Native American households on tribal lands in the lower 48 states had  telephone service, which was about 29 percentage points less than the  national rate of about 98 percent. However, because  it will take time to accumulate a large enough sample to produce data for  small communities, annual reports will not be available for all small  communities, including tribal lands, until 2010. The rate of Internet subscribership for Native American households on  tribal lands is unknown because neither the Census Bureau nor FCC  collects this data at the tribal level. Without current subscribership data,  it is difficult to assess progress or the impact of federal programs to  improve telecommunications on tribal lands. Native Americans Can Benefit from Several General and Tribal- Specific Federal Programs to Improve Telecommunications Services

The Department of Agriculture’s Rural Utilities Service and FCC are  responsible for several general programs designed to improve the nation’s  telecommunications infrastructure and make services affordable for all  consumers, which can benefit tribes and tribal lands. An additional universal service program, known as E-rate, provides  discounts on telecommunications services for schools and libraries  nationwide. In at least two cases, tribes have not applied for E-rate funds  because their tribal libraries are not eligible for state LSTA funds. The rural location  and rugged terrain of most tribal lands and tribes’ limited financial  resources were the barriers to improved telecommunications most often  cited by the officials of tribes and Alaska Native Villages we interviewed. These two barriers, the rural location of tribal lands (which increases the  cost of installing telecommunications infrastructure) and tribes’ limited  financial resources (which can make is difficult for residents and tribal  governments to pay for services) can combine to deter service providers  from making investments in telecommunications on tribal lands, resulting  in a lack of service, poor service quality, and little or no competition. A fourth barrier cited by tribal officials and other stakeholders is the  complex and costly process of obtaining rights-of-way for deploying  telecommunications infrastructure on tribal lands, which can impede  service providers’ deployment of telecommunications infrastructure. Tribes Are Addressing Barriers to Improved Telecommunications in Different Ways. Some of those we  spoke to told us that they were doing this because their provider was  unwilling to invest in improved telecommunications services, in part due  to the barriers of the tribe’s rural location, rugged terrain, and limited  financial resources. The tribes we visited are using federal grants, loans, or other assistance,  long-range planning, and private-sector partnerships to help improve  service on their lands. In addition, some tribes have addressed these  barriers by focusing on wireless technologies, which can be less costly to  deploy across large distances and rugged terrain. Some tribes are addressing the shortage of technically-trained tribal  members to plan and implement improvements on tribal lands through  mentoring and partnerships with educational institutions.
Why GAO Did This Study

An important goal of the Communications Act of 1934, as amended, is to ensure access to telecommunications services for all Americans. This testimony is based on GAO's January 2006 report GAO-06-189 , which reviewed 1) the status of telecommunications subscribership for Native Americans living on tribal lands; 2) federal programs available for improving telecommunications on these lands; 3) barriers to improvements; and 4) how some tribes are addressing these barriers.

What GAO Found

Based on the 2000 decennial census, the telephone subscribership rate for Native American households on tribal lands was substantially below the national level of about 98 percent. Specifically, about 69 percent of Native American households on tribal lands in the lower 48 states and about 87 percent in Alaska Native villages had telephone service. This data indicates some progress since 1990, though changes since 2000 are not known. The U.S. Census Bureau is implementing a new survey that will provide annual telephone subscribership rates, but the results for all tribal lands will not be available until 2010. The status of Internet subscribership on tribal lands is unknown because no one collects this data at the tribal level. Without current subscribership data, it is difficult to assess progress or the impact of federal programs to improve telecommunications on tribal lands. The Rural Utilities Service and the Federal Communications Commission (FCC) have several general programs to improve telecommunications in rural areas and make service affordable for low-income groups, which would include tribal lands. In addition, FCC created some programs targeted to tribes, including programs to provide discounts on the cost of telephone service to residents of tribal lands. However, one of FCC's universal service fund programs, which supports telecommunications services at libraries, has legislatively based eligibility rules that preclude tribal libraries in at least two states from being eligible for this funding. FCC officials told GAO that it is unable to modify these eligibility rules because they are contained in statute and thus modifications would require legislative action by Congress. The barriers to improving telecommunications on tribal lands most often cited by tribal officials, service providers, and others GAO spoke with were the rural, rugged terrain of tribal lands and tribes' limited financial resources. These barriers increase the costs of deploying infrastructure and limit the ability of service providers to recover their costs, which can reduce providers' interest in investing in providing or improving telecommunications services. Other barriers include the shortage of technically trained tribal members and providers' difficulty in obtaining rights of way to deploy their infrastructure on tribal lands. GAO found that to address the barriers of rural, rugged terrain and limited financial resources that can reduce providers' interest in investing on tribal lands, several tribes are moving toward owning or developing their own telecommunications systems, using federal grants, loans, or other assistance, and partnerships with the private sector. Some are also focusing on wireless technologies, which can be less expensive to deploy over rural, rugged terrain. Two tribes are bringing in wireless carriers to compete with wireline carriers on price and service. In addition, some tribes have developed ways to address the need for technical training, and one has worked to expedite the tribal decision-making process regarding rights-of-way approvals.