While this data  indicates some progress since 1990, changes since then are unknown due  to a lack of more current data. Telephone Subscribership for Native American Households on Most Tribal Lands Was Substantially Below the National Rate in 2000

According to the 2000 decennial census, the telephone subscribership rate  for Native American households on tribal lands in the lower 48 states was  68.6 percent, while for Alaska Native Villages it was 87 percent—both  substantially below the national rate of 97.6 percent. No Federal Data Available on Internet Subscribership Rates For Tribal Lands

The status of Internet subscribership on tribal lands is unknown because  no federal survey has been designed to track this information. Without current subscribership data, it is difficult to assess  progress or the impact of federal programs to improve telecommunications  on tribal lands. FCC also has several general programs to support improved  telecommunications services. FCC officials told us that modifications to the Act would  require legislative action by the Congress, because such modifications  cannot be made by FCC through a Commission order or administrative  proceeding. The third most often  cited barrier was a lack of technically trained tribal members to plan and  implement improvements in telecommunications. These two factors, the rural location of tribal lands (which increases the  cost of installing telecommunications infrastructure) and tribes’ limited  financial resources (which can make it difficult for residents and tribal  governments to pay for services) can combine to deter service providers  from making investments in telecommunications on tribal lands. Rights-of-Way Issues Were Also Cited as a Barrier to Improved Telecommunications Services on Tribal Lands

According to several service providers and tribal officials, obtaining a  right-of-way through Indian lands is a time-consuming and expensive  process that can impede service providers’ deployment of  telecommunications infrastructure. Tribes Are Addressing Barriers to Improved Telecommunications in Different Ways

Several tribes are moving towards owning or developing part or all of their  own telecommunications systems to address the barriers of tribal lands’  rural location and rugged terrain and tribes’ limited financial resources,  which can deter service providers from investing in telecommunications on  tribal lands. These tribes 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. According to tribal and  wireless service provider officials, the key to developing this solution was  the wireless provider’s ability to use universal service funds to help  subsidize the costs of its network and offer discounted telephone service to  tribal land residents. In addition, the company offers technical  consulting services to other tribes that are interested in providing their own  telecommunications network. In at least two cases, tribes have not applied for E-rate funds  because their tribal libraries are not eligible for state LSTA funds. In the draft report, we recommended that  the Chairman of the Federal Communications Commission direct FCC staff  to determine what additional data is needed to help assess progress toward  the goal of providing access to telecommunications services, including  high-speed Internet, to Native Americans living on tribal lands; determine  how this data should be regularly collected; and report to Congress on its  findings. Scope and Methodology

The objectives of this report were to determine: 1) the status of  telecommunications subscribership (telephone and Internet) for Native  Americans on tribal lands in the lower 48 states and Alaska; 2) federal  programs available for improving telecommunications services on tribal  lands; 3) the barriers that exist to improving telecommunications on tribal  lands; and 4) how some tribes have addressed these barriers.
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. The Federal Communications Commission has made efforts to improve the historically low subscribership rates of Native Americans on tribal lands. In addition, Congress is considering legislation to establish a grant program to help tribes improve telecommunications services on their lands. This report discusses 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. While this data indicates some progress since 1990, changes since 2000 are not known. The U.S. Census Bureau is implementing a new survey that will provide annual telephone subscribership rates, though 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 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 tribal lands, including programs to provide discounts on the cost of telephone service to residents of tribal lands and financial incentives to encourage wireless providers to serve tribal lands. However, one of FCC's universal service fund programs that 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 service. 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 private-sector partnerships. 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 the wireline carrier 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.