*Pages 1--3 from  Microsoft Word - 925.doc*
 NEWS  News  media  Information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830  TTY  202/  418-  2555  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 CORRECTED 
 FOR  IMMEDIATE  RELEASE  NEWS  MEDIA  CONTACT 
 April  17,  2000  Linda  Paris  202-  418-  7121 
 Michael  Balmoris  202-  418-  0253 


 FCC  CHAIRMAN  KENNARD  AND  COMMISSIONER  GLORIA  TRISTANI  TODAY  JOINED  PRESIDENT  CLINTON  IN  ANNOUNCING  A  PLAN  TO  PROVIDE  LOCAL 
 PHONE  SERVICE  FOR  AS  LOW  AS  $1  A  MONTH  IN  TRIBAL  AREAS 
 A  Promise  to  Make  Sure  No  Corner  of  America  Is  Left  Behind 
 Washington,  D.  C.    William  E.  Kennard,  chairman  of  the  Federal  Communications 
 Commission  (FCC),  and  Commissioner  Gloria  Tristani  joined  President  Clinton  today  in 
 announcing  a  plan  to  provide  basic  local  phone  service  for  as  low  as  $1  a  month  for  members  of 
 federally-  recognized  Indian  tribes.  FCC  Chairman  Kennard  proposed  a  new  investment  of 
 approximately  $17  million  in  the  existing  annual  $500  million  Lifeline  program  which  provides 
 a  discount  on  local  phone  bills  for  low-  income  customers. 


 Kennard  noted,  This  proposal  would  virtually  eliminate  affordability  of  monthly  bills  as 
 a  barrier  to  local  service.  It  would  create  a  market  which  telecommunications  companies  will  be 
 eager  to  serve,  and  result  in  an  increase  in  modern  infrastructure  in  Tribal  areas. 


 Chairman  Kennard  said,  This  investment  in  the  Lifeline  program  will  encourage  phone 
 carriers  to  expand  services  to  Indian  reservations.  I  am  hopeful  that  over  300,000  Indian 
 households  will  benefit  from  this  new  discount. 


 Kennard  commented,  It  is  disgraceful  that  while  we  have  a  telephone  system  that  is  the 
 envy  of  the  world,  basic  telecommunications  services  are  not  widely  enjoyed  by  our  lands  oldest 
 people.  Indians  have  among  the  lowest  phone  penetration  rate  of  any  demographic  group  in  this 
 country.  Only  47%  of  Indians  on  reservations  have  phones,  compared  to  94%  of  households 
 nationwide.  The  Navajo  Reservation  has  one  of  the  lowest  telephone  subscribership  levels,  with 
 only  22%  of  households  receiving  service. 


 Kennard  and  Tristani  accompanied  President  Clinton  on  his  visit  today  to  the  Navajo 
 Reservation  and  to  the  Navajo  Reservation  Community  Boys  and  Girls  Club  where  the  President 
 highlighted  the  Lifeline  program  announcement  and  other  efforts  to  close  the  gap  forever  on  the 
 digital  divide. 
 -  more  - 
1
 2 
 The  Lifeline  program,  created  in  1985,  provides  a  discount  on  local  telephone  bills  for 
 low-  income  customers  so  that  basic  local  phone  service  is  more  affordable.  Among  the  basic 
 services  covered  by  the  discount  are  voice  grade  access  to  the  public  switch  network,  emergency 
 services,  and  operator  services. 


 For  many  customers,  local  phone  bills,  before  any  discount,  are  about  $20  a  month.  The 
 current  federal  Lifeline  program  reduces  eligible  customers  local  phone  bills  by  as  much  as  $7 
 per  month.  Many  states  provide  additional  discounts.  Some  states,  like  New  York,  bring  basic 
 local  service  to  as  low  as  $1  a  month. 


 This  Lifeline  proposal  is  part  of  a  larger  FCC  effort  to  ensure  that  Indians  on  reservations 
 gain  the  same  access  to  telephone  services  enjoyed  by  other  Americans.  To  this  end,  the 
 Commission  continues  to  engage  in  a  national  results-  oriented  dialogue  with  Indian  tribes  to  find 
 ways  to  encourage  phone  and  wireless  carriers  to  expand  services  to  underserved  areas.  The 
 Commission  has  already  held  two  field  hearings,  plans  to  offer  a  seminar  for  Tribal  leaders  this 
 coming  fall  and  has  a  proposed  rule  to  promote  universal  service  on  tribal  lands  and  other  insular 
 areas. 


 Like  the  successful  E-  rate  program  to  wire  schools  and  libraries  to  the  Internet,  the 
 Lifeline  program  is  paid  for  out  of  the  FCCs  Universal  Service  Fund,  which  is  funded  by  an 
 assessment  on  carriers  interstate  and  international  end-  user  telecommunications  revenues. 
 This  Lifeline  proposal  would  increase  the  Universal  Service  Fund  by  approximately 
 four-  tenths  of  one  percent  (0.  4%).  Today,  5.6  million  customers  receive  Lifeline  service 
 nationwide. 


 Kennard  has  devoted  his  chairmanship  to  working  to  narrow  the  digital  divide  by  wiring 
 schools  and  libraries  to  the  Internet  through  the  E-  rate  program;  speeding  deployment  of 
 advanced  services  to  rural  areas;  and  ensuring  that  people  with  disabilities  have  complete  access 
 to  telecom  services  and  equipment. 


 -  FCC  - 
2
 3 
 FACT  SHEET  INDIAN  LIFELINE  SERVICE 
 LIFELINE  PROPOSAL:  Increases  the  current  discount  for  basic,  local  phone  service  for  income-  eligible  members  of  federally-  recognized  Indian  tribes. 
 1.  Summary  of  Proposal  x 
 Eliminates  lack  of  affordability  as  a  barrier  to  local  phone  service,  by  making  local  phone 
 service  available  to  all  members  of  Indian  tribes  for  as  low  as  $1  per  month. 


 x  Encourages  the  build-  out  of  telecommunications  infrastructure.  Companies  will  now  have  a 
 predictable  revenue  stream  to  warrant  facilities  construction  in  areas  previously  regarded  as 
 high  risk  and  unprofitable. 


 x  Attracts  new  entrants  and  new  technologies  to  provide  service  to  these  communities. 


 x  Will  result  in  a  minimal  increase  to  the  Universal  Service  Fund  (approximately  0.  4%). 


 2.  Lifeline  Program  Background  x 
 In  1985,  the  Lifeline  Program  was  created  to  provide  discounts  on  basic  telephone  service  of 
 up  to  $7.  00  to  all  income  eligible  telephone  customers. 


 x  Today,  5.6  million  Americans  receive  Lifeline  service. 


 x  The  Lifeline  program,  a  part  of  the  Universal  Service  Fund,  is  included  in  the  universal 
 service  assessment  on  carriers  interstate  and  international  end-  user  telecommunications 
 revenues.  The  Lifeline  component  of  the  Universal  Service  Fund  amounts  to  about  $500 
 million  a  year. 


 3.  Tribal  Phone  Penetration  x 
 In  spite  of  the  existing  Lifeline  discount,  telephone  subscribership  among  members  of 
 federally-  recognized  Indian  tribes  remains  low. 


 x  Only  22%  of  Navajo  Reservation  households  have  a  phone,  according  to  the  1990 
 census. 


 x  Nationwide,  penetration  rate  for  Indians  on  reservations  is  47%. 


 x  Penetration  rate  for  United  States  is  94%. 
 x  Low  incomes  make  it  difficult  for  Indians  to  have  a  phone  even  where  facilities  are  available. 
 x  Average  annual  income  on  the  Navajo  Reservation  is  $6,352. 
 x  Average  per  capita  annual  income  of  Indians  on  reservations  or  trust  lands  is  $4,478. 
 x  Average  per  capita  annual  income  in  the  United  States  is  $14,420. 
3