HOW TO BUILD A TRIBAL TELCO The Nuts & Bolts Tribal Telecom
2013 February 11, 2013 1 Slide 2 AGENDA I. To ILEC or To CLEC II.
To Wireline or To Wireless III. To Build or To Buy IV. How To
Negotiate with the ILEC V. Broadcast Services VI. How to Position
the Telco Enterprise with the Community VII. Jobs VIII. Funding
Resources 2 Slide 3 TO ILEC OR TO CLEC ILEC Incumbent Local
Exchange Company The company currently providing voice and data
telephone service to the Community. CLEC Competitive Local Exchange
Company An alternative provider of voice and data telephone service
to the ILEC. 3 Slide 4 TO ILEC OR TO CLEC (CONT.) If no current
telephone service is available to the Community, consider obtaining
Eligible Telecommunications Carrier (ETC) status from the FCC or
State PUC/PSC. Being an ETC is becoming the ILEC, or Incumbent
Telephone Exchange Carrier. ETC status has merits as you receive
Federal subsidy income from: NECA National Exchange Carriers
Association USF Universal Service Fund 4 Slide 5 TO ILEC OR TO CLEC
(CONT.) Becoming a CLEC is quick, easy and inexpensive. Requires a
tariff and application filing with Community Council if restricted
to the Community only. Requires a tariff and application filing
with state PUC/PSC if CLEC serves off the Community. Legal
representation can assist with either process. Competitively and
strategically positions the Community over the current service
provider. 5 Slide 6 TO ILEC OR TO CLEC (CONT.) The benefits of a
Tribal CLEC: Allows you to bypass the current service provider.
Allows you to aggregate Community traffic/usage. Allows you to
build your own network. Allows you to build a state-of-the-art
network. Leverages negotiations to buy plant from ILEC. Strengthens
position for plant evaluation. Leverages the Community to pay for
member services. 6 Slide 7 TO ILEC OR TO CLEC If CLEC, take all the
business from the ILEC. Leverage Tribal unity. Once all business is
taken from ILEC, move to become an Eligible Telecommunications
Carrier (ETC). ETC Status is granted by the FCC or state PUC/PSC.
ETC status allows you to recover plant investment through Federal
subsidy programs. 7 Slide 8 TO WIRELINE OR TO WIRELESS Optimum is
to use both technologies when possible. Both technologies are
recoverable when an ETC. Wireless is cheaper and faster to deploy.
Wireline is most secure and reliable. Wireline is more expensive
and takes longer to deploy. 8 Slide 9 TO WIRELINE OR TO WIRELESS If
a checker board Community, wireless is likely most optimal. If a
contiguous Community, use wire/fiber optics for bulk transport and
commercial applications (hospital, gaming, govt., schools, etc.),
and use wireless for remote, expensive areas to access, to overcome
barriers (terrain, cultural, etc.) and for sparsely populated
locations. 9 Slide 10 TO WIRELINE OR TO WIRELESS Wire = fiber
optics Benefits of Fiber Optics are: Future Proof unlimited
bandwidth. Faster Data Rates copper carries 6 phone calls; fiber
carries 2.5 million phone calls. Cost lower to maintain &
repair; multiple service platform. Reliability fast and easy to
repair. Efficiency phone, video, data, TV, etc. Property Values
adds estimated $5,000 to property. Quality of Life- endless number
of service applications. 10 Slide 11 TO WIRELINE OR TO WIRELESS
Only use licensed wireless spectrum. Wireless spectrum is available
from the FCC quickly and inexpensively. Wireless access lines cost
roughly $500 to build. Wireline access lines cost roughly $5,000 to
build. Wireless spectrum to use: 8-15 mghz (?) All Wireless
transmissions transit over a wireline network structure. The public
switched telephone network is by far a wireline based network. 11
Slide 12 TO BUILD OR TO BUY Build your network or buy your network
from the existing service provider? Buying is faster and allows
immediate ETC status. Building a network takes longer and can be
expensive. Negotiate a fair market value or price easier said than
done. Build your network as a CLEC and bypass the current service
provider. 12 Slide 13 TO BUILD OR TO BUY Negotiating the purchase
of existing plant from the current service provider has pitfalls to
avoid: Long negotiation lead time causes delay Condition of current
plant (old, poorly maintained, out dated/copper, etc.) Maintenance
of current plant (is it in good condition?) Price of current plant
(what is fair market value?) 13 Slide 14 NEGOTIATING WITH THE ILEC
ILEC asking price is often over valued or inflated. Condition of
ILEC plant is often poorly maintained. Existing ILEC plant is often
out of date. Leverage Tribal Unity strength in numbers. Threaten to
establish a CLEC and bypass. Leverage Tribal Sovereignty remove the
ILEC from the Community. Get a third party opinion on everything;
value, price, plant condition, etc. 14 Slide 15 NEGOTIATING WITH
THE ILEC Take up the issue of purchasing the plant from the ILEC
with both State and Federal regulatory authorities. Take the issue
to a legal forum sovereignty over our own lands. Congressional
approach trust relationship should require telecommunications
obligations. 15 Slide 16 BROADCAST SERVICES Build a transmission
tower centrally located to the service territory. On it, Place and
Integrate: Regular or Low Power AM/FM Broadcast Radio Regular or
Low Power Television Broadcast Wireless Last Mile Loop Wireless
Middle Mile Transmission Cellular Service Lease Tower Space or
Provision 16 Slide 17 HOW TO POSITION WITH COMMUNITY The enterprise
can be a co-operative. Incorporate the enterprise by the Community.
The enterprise can be a non-profit corporation. The enterprise can
be a for-profit corporation. Articles of Incorporation created by
Council. Bylaws created by Council. Grant First Right of Refusal to
the enterprise. 17 Slide 18 HOW TO POSITION WITH THE COMMUNITY
Quarterly updates to Council total transparency. Membership with
NTCA, NCAI, etc. Tribal Engagement requirements. Financial
Statement Audit requirements: Tribal Public Federal Government (FCC
OIG) 18 Slide 19 JOBS ILEC provides a few more jobs than a CLEC.
The use of wireline technology provides more jobs than the use of
wireless technology. Building a network provides more jobs and
teaches more craft than does purchasing existing plant from the
current service provider. 19 Slide 20 FUNDING RESOURCES Federal
Grants - various kinds Traditional resource is USDA RUS Federal
loan with ultra low interest rate May be difficult to obtain in
todays market The secret sauce recipe: Contact the GRTI Board of
Directors Personal contact is Mr. Anthony Newkirk, Chairman:
602-653-3022 Email;
[email protected]@GilaRiverTel.com 20 Slide 21
CLOSING Questions? Thank you! Bruce Holdridge 520-796-8885
[email protected] 21
