**National Summit on Emerging Tribal Economies**

**September 19, 2002**

**9:00 a.m.**

**Phoenix, Arizona**

**Remarks of Michael K. Powell**

**Chairman, Federal Communications Commission**

I.  **Introduction**

Good morning. I want to thank the National Summit planners for the
opportunity to speak at this important event. It's gratifying to see the
enormous interest and attendance that the summit has engendered, and it
is wonderful to see that conference registration has far exceeded the
hopes of all of the National Summit's organizers. In particular, I want
to recognize all of the efforts of the host tribes in Arizona for their
dedication to this forum, the tribal leaders and representatives who
spent countless hours in planning and preparation, and finally I want to
thank the corporate partners for exhibiting and educating us about their
products and services.

I also would like to point out that I am not the only representative of
the Federal Communications Commission attending this conference today.
We are fortunate to have my colleague Commissioner Michael Copps and his
staff at the conference, who will be speaking later on this afternoon.
Also, there are a number of key staffers of the agency in the audience,
including K. Dane Snowden of our Consumer & Governmental Affairs Bureau
and Kris Monteith, Associate Bureau Chief responsible for
intergovernmental affairs, Geoff Blackwell, and the infamous Nancy Plon.
Each of us is here to talk, to listen, and to work toward reducing
barriers that separate Indian country from the benefits of sustainable
economic development.

Producing employment opportunities in Indian Country and developing
sustainable tribal economies are the twin themes of my remarks this
morning. It is my long-held belief that access to telecommunications is
essential to reaching these two core goals. Empowering Indian Country
and allowing you to control your own nation and its infrastructure is
the central objective of our work. The Commission stands ready to work
in partnership with Indian tribes to realize the goal of creating a
self-sufficient and empowered Indian economy. Our
government-to-government relationship demands no less.

At the outset I want to note that ours is not exclusively an economic
exercise. In economic theories generally, what can't be quantified often
gets lost, and there's much in Indian Country that can't be quantified.
For example, cultural differences can't be quantified, yet they play a
very important part in terms of the way we do things. Also, the federal
government's relationship with the tribes -- including that of the
Federal Communications Commission -- is unique: we deal as sovereign
government-to-sovereign government. This relationship cannot be
quantified, but I want to assure you that the mutual respect that is
appropriate for this trust relationship is an important component of the
Commission's processes.

II. **Economic Empowerment**

In the last ten years, the Internet evolved to become a dominant force
in changing the way we learn, do business, provide healthcare, and
entertain ourselves. It is no easy task to keep up with the
technological developments associated with this evolution, but we must
develop an understanding of this change if we are to realize its
promise. In such times, moving backward or even maintaining the *status
quo* is not an option. Rather, embracing and understanding this change
is the path to economic development and empowerment. In Indian Country,
this means that if networks are to realize their highest and best use,
we all need to move forward together.

In this fast-changing environment, creating sustainable economies will
depend a great deal on how consumers respond in a networked economy.
Consumer demand patterns are changing quickly, but make no mistake,
consumers are demanding the products and services that a networked
economy provides. Who could have predicted the numbers of consumers
logging on to E-bay or the websites that trade in Indian artwork? I am
an avid spectator of developments on the 'Net. Before I arrived here I
toured some of the sites that support the Indian community. Who could
have predicted ten years ago that the National Congress of American
Indians would host a wonderful site called Indiantech.org? Encouraging
developments such as these challenge us to move past ways of thinking
that were honed long before the digital revolution to recognize and
seize the opportunities that new consumption patterns present.

An obvious example of such change is the development of telemedicine.
When I went to law school, some of the medical tort cases I read spoke
of a "locality rule" that protected rural medical practitioners from
certain kinds of liability. The reasoning was that a medical doctor in a
tiny rural town couldn't possibly be held to the same standard of
competence as a big-city doctor in a big clinic, who had access to every
modern tool and other colleagues with whom to consult.

The locality rule has been eroded, in part because of the Internet, and
particularly telemedicine. Now, a doctor in a small town can send x-rays
and information to his colleagues at large clinics for discussion and
diagnosis. In other words, the standard of health care across the board
is becoming higher, in part because of the possibilities offered by
improved telecommunications. Someone in Moose Lake, Minnesota, can
consult with someone at the Mayo Clinic in Rochester, in a heartbeat.
Telemedicine should wipe out the need for a legal excuse for inferior
health care.

Looking forward, together we will face challenges in areas that will
help create the America of the 21^st^ century. Although we'd like to
wire the world immediately and have all manner of wonderful benefits
that broadband can bring immediately, we must also be disciplined to
ensure that we do not re-create the irrational expectations of the late
1990s. Viewed through a more realistic lens, technology is still forcing
a restructuring of everything we do, and no more so than in the case of
broadband deployment. Our overall concern in this area is to prepare
America -- all Americans -- to embrace what the new century will bring.

Despite these changes I remain optimistic about the future. There is no
doubt that the creation of tribal information economies can greatly
improve the economic situation of many tribes and their individual
members. Information technology and access to telecommunications as a
means toward economic empowerment is essential to the future growth and
strengthening of tribal life. Correctly introduced, it can bring
significant advances to tribal financial, social, political, healthcare
and educational systems. Targeted initiatives such as tribal information
parks connected to broadband networks, can generate economic empowerment
and unlock the entrepreneurial talents of your people. Virtual workforce
development through information technology can provide opportunities for
tribes to provide high-quality, technologically-savvy workforces at much
lower costs than are available in more urbanized parts of the country.

With a sufficient technology infrastructure, Indian Country can take
advantage of many of the economic realities of rural life to become
competitive in any number of technology industries. Independent
professional workers working from reservations via broadband facilities
could constitute an attractive workforce for both tribal and non-tribal
companies. Broadband infrastructure deployed to support tribal
entrepreneurs will allow them to gain access to business information
once reserved only to the largest multinational corporations. With
access to broadband telecommunications services, updated commodity
prices are within reach, collaboration with engineers to build physical
infrastructure such as roads, and software programmers to build computer
infrastructure is possible.

Ask Sonny Van, a 20-year-old high school graduate, and member of the
Northern Ute tribe. Van\'s job options until recently were limited to
chopping wood or changing oil at a Wal-Mart 24 miles away for \$7 an
hour. Today, he works as a \$9-per-hour technical-support specialist and
maintains computers for Uintah River Technology (URT), a
technology-outsourcing startup with \$2.3 million in seed capital. This
opportunity was made possible after Northern Ute elders paid
telecommunications companies to install hundreds of miles of high-speed
optical cable through the mountainous terrain of the 4.5 million-acre
Uintah and Ouray Reservation located in Utah. With access to
telecommunications, other information technology opportunities are
available. *Business Week* magazine reports that Indian outsourcing
entrepreneurs providing software consulting and data entry to call
centers operations can undercut domestic competitors by as much as 50%
in terms of price.

Once deployed, the benefits of broadband platforms can develop in
unanticipated and positive ways that foster sustainable economic
development. For example, in addition to basic local and long distance
communications between tribes and the world, there is no reason that a
broadband platform cannot include videoconferencing functionality and
enable the provision of video services. Telemedicine applications can
leverage this infrastructure to bring distant specialists closer to the
immediate healthcare needs of people living on reservations. Each of
these efforts can have a tangible effect on the lives of people living
on the reservation.

Relatively soon after broadband networks are deployed, a tipping point
may arrive. As information is imported to Indian Country, and employment
opportunities grow, the rate of young people leaving the reservation may
slow. As more young people remain on the reservation, economic
development to meet these new consumer demands will grow. Ancillary
businesses, typically in the service sector, may find their way in the
evolving and expanding economy of the reservation. The benefits of this
virtuous cycle of economic opportunity, employment, and decreasing
departure rates can have significant benefits in terms of creating
sustainable economic and cultural communities on the reservation. Again,
there is cause to be optimistic about the future in a networked world.

Of course, I fully appreciate that this technological nirvana is not
here today. Many reservations lack the infrastructure to support basic
telecommunications services. To be sure, we can and will continue to
support the development of telecommunications infrastructure to bring
basic telecommunications services to unserved and underserved areas and
ultimately lay the foundation for the deployment of broadband service.

**III. Consultation and Outreach**

As I discussed above, it is clear that things are moving ahead rapidly
in the world of telecommunications, so a fair question is to ask whether
the Commission can keep up. Modernization, like charity, begins at home.
Change has in fact been sweeping the FCC as an organization, and for a
very simple reason: when the Commission was established, the only
telecommunications we had were the telephone and the radio, with
television joining in the next decade. The Commission was originally
geared to deal with media whose possibilities were just starting to be
recognized. With that in mind, I would like to talk a little about how
the Commission has adapted to this change, and then toward the end of my
remarks, I would like to speak for a moment about three important areas
that the Commission is focused on: Our Indian Training Initiative, our
efforts in the area of Lifeline and Linkup support, and the Commission's
work in the area of tower siting.

In March 2002, the Commission launched a new business plan to ensure
that the agency is more responsive, effective, and efficient going
forward. This new plan has, in part, aligned the FCC's functions with
the dynamic and converging communications markets. Of particular
interest to this audience is the formation of a new intergovernmental
affairs function, housed in our Consumer & Governmental Affairs Bureau.
This intergovernmental affairs office was created -- in part -- to honor
and respect the government-to-government relationship we have with
federally-recognized tribes. A consequence of this reorganization is to
raise the profile of Indian issues at the Commission by assigning them
to our Bureau Chief, Dane Snowden. This new structure more effectively
supports the Commission's consultation and outreach efforts.

The Intergovernmental Affairs Office is available to assist tribal
leaders and Indian consumers in getting answers to their communications
questions. With this new function, our goal is to develop solid,
mutually beneficial relationships with our state, local, and tribal
counterparts so that we move forward to achieve our goals in a way that
furthers all of our interests and benefits American consumers.

We recognize that there is no one-size-fits-all solution to a given
problem. Thus, what we'd like to do is facilitate the efforts of the
tribes to determine their own telecommunications future as they see fit.
We'd like to work together, to help get Indian communities the tools
that will empower them to be creative and innovative in bringing
solutions that fit their own particular needs and the desires of their
community members. Indians want a helping hand, not a handout!

While challenges remain, it is important to shine the light on the many
successes in Indian Country. One common theme to those successes appears
to be that in each case, the tribal community charted its own course to
fit its particular circumstances and needs -- taking advantage of the
government programs available to assist.

Let me start with a resounding success story. Earlier this year, I
congratulated the Mescalero Apache Tribe on the first anniversary of
MATI -- Mescalero Apache Telecom Inc. -- New Mexico's first
tribally-owned telephone company. When MATI purchased the local
telephone facility, only 45 percent of the homes on the reservation had
telephone service. In its first year of operation, the company has
connected previously unserved areas of the reservation -- more than
doubling subscribership.

In addition to offering new services, including caller ID and a local
telephone office to pay bills, they recently installed a new network
switch with broadband capability, providing high-speed DSL Internet
access to 95 percent of the homes on the reservation. Most importantly,
MATI is training tribal members for telephone company employment and
sharing its experience with other tribes. Mescalero met the difficult
challenge of offering service to its residents, and the FCC will serve
as a resource for companies like Mescalero. Other tribes may have
different challenges; the Commission's role is not to offer one size
fits all solutions, but to be a resource for innovative ways to provide
service.

Another success story is Gila River Telecommunications, Inc. in
Chandler, Arizona, which was established in 1988 to provide
telecommunications services to the Gila River Indian Community. GRTI
currently has 30 employees and over 3,600 lines, of which about 48% are
business lines. Eight central offices with digital switching equipment
are connected by fiberoptic cable. The company offers enhanced services
such as cellular, paging, Internet, and satellite TV.

Another advance came last year, when the FCC designated Western Wireless
as an Eligible Telecommunications Carrier for the Oglala Sioux tribal
members living on the Pine Ridge Indian Reservation in South Dakota.
This designation allows Western Wireless to receive Federal Universal
Service support for providing telephone service to tribal members living
on the reservation. This is what I mean by doing what we can to empower
and assist tribes for them to take advantage of the opportunity.

Other tribally-owned and operated companies include Fort Mojave
Telecommunications, Inc. (Arizona, Nevada, and California) the Tohono
O'Odham Utility Authority (Arizona), Saddleback Communications
(Arizona), and San Carlos Apache Utility Authority, Inc. (Arizona). Each
is an employer as well as a service provider, doing double duty to serve
its community.

The Commission also has a number of other programs and activities that
are under way. To further the deployment of basic and advanced
telecommunications services in Indian Country, the Commission recently
announced the Indian Telecommunications Initiatives, which includes a
series of interactive workshops among tribes, government agencies, and
industry to address telecom issues facing residents of Native American
communities.

This initiative will facilitate partnerships among these groups to
improve telecommunications coverage in those communities. We are
actively engaged in conversations with representatives of Indian Country
to help us develop and fine tune our plan for ITI, so that we can
maximize its value to the target audience.

The Commission will hold a series of regional interactive workshops
among tribes, federal agencies and the communications industry to
address telecommunications issues facing Indian Country in a targeted
manner. This approach acknowledges that different tribes are at
different stages of economic development and that their experiences vary
with telecommunications deployment. We propose that regional workshops
be held in regions of the country convenient to Native Americans in
surrounding areas. Specific workshop sites should be identified in
consultation with tribal governments and Native American organizations,
such as the National Congress of American Indians and the National
Indian Telecommunications Institute. The regional concept, in
conjunction with a workshop lasting only one day, should minimize the
costs to attend, thereby increasing attendance and participation.

It is important that the specific agenda for each regional workshop be
developed in collaboration with tribal leaders and representatives from
the particular region in question. In that manner, the Commission will
endeavor to target the agenda to fit the particular needs of the
regional tribes, recognizing that they may be in different stages of
development in terms of the availability and deployment of
telecommunications services on tribal lands. To the extent possible,
these workshops should be interactive in nature, aimed at providing
attendees with a "hands-on" experience.

Our longstanding federal support programs are reinforced by these
outreach efforts. As some of you may already be aware, the Commission
implements two enhanced federal universal service programs specifically
designed to provide financial assistance to low-income telephone
subscribers and ensure that all low-income Americans -- particularly
low-income Native Americans -- can afford telephone service. They are
called the Link-Up and Lifeline programs.

Under my Chairmanship, the FCC will work to ensure that these support
programs are administered in a way that directs the support to those who
require it most. To make these programs more accessible, our Consumer &
Governmental Affairs Bureau recently launched our "Get Connected:
Afford-a-Phone" outreach program, designed to spread the word about the
Federal Lifeline/Link-Up programs, which make it possible for qualifying
low-income households to get and retain telephone service.

I have also directed the staff to re-examine what we can do to further
assist low-income consumers living "near reservations." Our goal must be
to ensure that Lifeline and Linkup support is targeted to the most
underserved areas of the Nation. A number of parties, including most
recently Smith Bagely and the Washington Utilities and Transportation
Commission, have submitted proposals to address this issue. The
Commission will move expeditiously on this matter. We will act to ensure
that the agency precisely identifies the geographic areas that are "near
reservations" and therefore entitled to support.

Tower siting remains an area of concern for both the Commission and
tribal governments. The Commission will take the extra step to consult
with tribes to ensure that tribal concerns are part of the
decision-making process. We are making great efforts with regard to the
new nationwide Programmatic Agreement currently under consideration. We
have invited the tribes to participate in developing the Programmatic
Agreement by a public notice issued this past February. We have kept in
contact with those tribes that have expressed an interest. The
development of the Programmatic Agreement remains an on-going process,
and there remains ample opportunity for the Tribes to participate fully
as consulting parties in that process which we invite them to do. To the
extent any tribe indicates an interest, the Commission will engage the
tribe in individual consultation on an government-to-government basis
and will fully consider its concerns.

These are but a few of the specific examples of the
government-to-government exercises of our regulatory jurisdiction. In
addition to the internal assessments that tribal governments must
undertake, to ensure that access to telecommunications infrastructure
supports sustainable economic development, I encourage tribal
governments to continue to engage the Commission with respect to tribal
telecommunications issues. I hope that you participate -- formally or
informally -- in as many FCC proceedings as possible, because we want to
hear what you have to say. A proactive, participatory approach will
ensure that neither the tribes nor the FCC will be in a defensive or
adversarial position when the FCC issues any one given decision. We may
not always agree with each other's position, but with increased
participation on our part and yours, understanding of the reasoning that
underlies individual decisions is possible.

In closing, I want to state plainly that I am optimistic about the
possibilities for Indian country. I have never wavered in my belief that
telecommunications technologies offer tremendous opportunities for
tribes and individuals living on reservations. With a thorough
understanding of tribal needs and a well informed Commission, we will be
in a position to ensure that the Federal Communications Commission
empowers -- and does nothing to impede -- the development of sustainable
tribal economies.

Once again, I want to thank you for inviting me to speak today and to
share some of my thoughts and vision. I am confident that -- together --
step-by-step we will achieve the benefits of creating sustainable
economies on tribal lands. Enjoy the rest of this fabulous conference,
and God-speed.

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