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JUNE 8, 2000

Today, the Federal Communications Commission is expected to vote on a new investment of $17 million to the existing $500 million Lifeline program. The Lifeline program was created in 1985 and gives discounts on local telephone service to low-income customers.

The $17 million in additions will directly help Indian living on reservations.

Late addition: The FCC has approved the plan. 10:45 AM EST.

As part of a nationwide Digital Divide tour, President Clinton proposed to bring more telephones to reservations through the existing Lifeline program. Because the Navajo reservation has extremely low rates of phone access and lands in three states, the President made his announcement there in April.

Participants in the Lifeline program pay as little as $7 a month and some states, like New York, provide additional discounts, allowing customers to pay just $1 for service. Approximately 5.6 million Americans today participate in the program.

The FCC hopes to add more Indian households to the program. "I am hopeful that over 300,000 Indian households will benefit from this new discount," said Chairman William E. Kennard.

According a Benton Foundation foundation study of phone usage, almost 82% of the Navajo Nation is without phones. Compared to the St. Regis Mohawk of New York, where only 16% are without phones, the Navajo reservation is a perfect target for the $1 a month plan.

Not surprisingly, the proposed additions to the Lifeline program only benefit reservation communities.

According to the 1990 Census, approximately 60% of Indians live off reservation. As with health care from the Indian Health Service, urban Indians won't see much direct benefit from the new plan, despite being a significant amount of the Native demographic today.

The $17 million necessary to increase access to Indian reservations will come from a small (0.4%) rate increase to the Universal Service Fund, a fund to which telecommunications companies must contribute in order to promote service to all consumers, such as those in rural areas. The companies, such as AT&T, typically pass on the costs to consumers on their long distance bills.

Recently, AT&T recently proposed a hike in long distance rates, a proposal with which the FCC was not pleased. On Wednesday, FCC Commissioner Gloria Tristani said "I was totally misled by AT&T," regarding the plan to raise calls every day except Sunday to 29 cents a minute. However, pressure from the government and consumer groups has led AT&T to change its mind.

Related Stories:
Indian Country: Falling into the Digital Divide? (Tech 04/17)
Clinton Pledges Indian Country Support (The Talking Circle 04/14)
Clinton's Proposal Draws Skeptics (The Talking Circle 4/14)
Indian Country: Falling into the Digital Divide? (Tech 04/11)
Digital Divide Stats (Tech 4/11)

Relevant Links:
The FCC: www.fcc.gov