Tribal Company Looks to Collect USF Funding, Expand Wireless Service & Broadband

Earlier this month, the FCC granted Dakotas-based Standing Rock Communications competitive eligible telecommunications carrier (CETC) status, which will open the door for Standing Rock to receive rural, high-cost Universal Service Funding at the same rate as incumbent carriers who also provide service in the area; currently, these rates are about $23-66 per line per month. With the extra revenue, Standing Rock hopes to improve its wireless service and broadband capacity, in order to compete with CenturyLink (former Qwest market) and West River Telephone, the area's ILEC. The decision comes as the FCC attempts to phase out the CETC designation of the USF, but grants exceptions to tribal phone companies who often provide coverage in unserved or underserved regions.

The USF funding will also help free up revenue for Standing Rock's wireless expansion, as the company currently is rolling out Phase I of its build out – installing towers, equipment, and antennas throughout the reservation. In Phases II and III, the company plans to also add more towers and equipment to improve its service area.

“This decision, long-awaited, but most welcome, means that we will receive federal support to operate our state-of-the-art-network and deliver desperately-needed wireless service to Tribal residents throughout our rural reservation,” said Charles Murphy, chairman of Standing Rock Sioux Tribe.

As a tribal-owned wireless communications provider, Standing Rock operates both fixed and digital cellular service throughout 4k square miles in North and South Dakota – an area corresponding to the Standing Rock Sioux Tribe Reservation. Landline subscriber rates are quite low on the reservation, and according to Standing Rock Communications general manager Mike McAllister, there is evidence that wireless voice and data service would be well-received by residents.

Doug Bonner, a spokesperson for Standing Rock Communications and the lawyer representing Standing Rock during its FCC petition, said that for the past three years the company has invested in a CDMA network with 18 cell sites and that “without Universal Service funding, it has been a huge financial commitment and a burden on the part of the tribe.” Bonner also noted that the USF funding could help provide more opportunities for families on the reservation, where “the average income is $10k and the high-school graduation rate is 60% or less.”

Standing Rock currently offers the Lifeline Program, which helps by subsidizing monthly phone bills for low-income subscribers, but hopes even more opportunities and education will come from improved communications and data access. Broadband may be key to these new opportunities, and Standing Rock says it will also be offering broadband wireless services capable of supporting download speeds of 3 Mb/s and up. McAllister noted that the higher speeds will be possible by using fixed wireless. “Because of the way we built our network we can implement it without deploying LTE or WiMax,” he said.

The official FCC Order states that it is important for the Standing Rock Sioux Tribe to “own and operate the critical communications infrastructure needed to protect the health and safety of Tribal consumers, spur local economic development, preserve Tribal language and culture, and further the education of consumers through distance education programs.”

The Commission's decision might also set a precedent for future regulation of communications services on tribal lands, as the Commission ruled it unnecessary to redefine a rural telephone company's service area when the ETC is designated throughout the rural service areas in the FCC's jurisdiction (such as the rural service areas within reservation boundaries). As a result of this decision, Standing Rock will not have to wait for state commission approval of its ETC status – a process that had been delaying USF subsidies.

Bonner argued that the FCC's order reflects a strong commitment to communications development on tribal lands: “[This decision] is a strong federal agency statement of the importance of Tribes being empowered to own and operate critical infrastructure (such as a ubiquitous wireless communications network) throughout a federally recognized Reservation to meet the needs of their communities and historically underserved Tribal lands.”