Infrastructure Development

1
Infrastructure Development Financing
Eric Jensen
Four Horizons Development Company
2
Telecommunications, Broadband and Tribal
Sovereignty

• Broadbanddefined by the FCC as 256 kbs, and by
  others as megabytes, the amount required to
  transmit moving pictures--is fairly non-existent
  in Indian Country and rural communities
• Of the 562 federally recognized tribes, only 7
  tribes have been able to build its own tribal
  telecommunications systems
• Not for everyone? Broadband is a tool for
  self-sufficiency, governance, education, economic
  opportunity
• The Mescalero story

3
Key Questions Before Committing to an
Infrastructure Plan

• What are the needs of the tribe data management
  voice coverage network linkage capacity degree
  of reliability versus cost Broadband
  requirements
• Primary consideration How will the Tribe pay for
  the infrastructure? Will the teleco be a Tribal
  service with sufficient tribal funds resources
  to service the capital and operational debts or
  will the teleco be a self-sufficient enterprise?
• This decision on coverage, service or revenue
  emphasis will effect investment and loan options

4
Familiar Landscapes Problems

• Too many communities run down the communications
  road by focusing on technology first, without a
  sense of how revenues or debts service or
  operational costs will be met
• Nearly every tribe is engaged in the annual
  struggle to patchwork extend or repair pieces of
  their internal network system, with limited
  budgets and no return on their investment
• Tribes find new technologies like Wireless,
  satellite, cable and voice over IP attractive

5
Conceptual Shifts for Tribal Communities

• Look at the long-term communications needs of the
  community, not just the network and patchwork
  needs
• Telecommunications isnt traditional economic
  development it is the fundamental foundation to
  support enterprise and develop skills
• Become an owner rather than a renter
• Broadband is a powerful tool that the tribe can
  develop to preserve culture, language and
  community

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Technology

• Look to solutions, not to technology it all
  becomes obsolete quickly
• Look to interoperability, scale-ability and
  redundancy
• Any technology will do, providing one pays
• Cost isnt everything reliability, flexibility
  and revenue options are more important

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Let the Buyer Beware

• If the Tribe wants to become a carrier of last
  resort for its own people, can the technologies
  that are popular,wireless, satellite, cable,
  VOIP, do the job meet the service needs of the
  community? Can it generate a revenue and will it
  be sufficient to service the capital debt, pay
  for operations and expand next generation
  services? What are the regulatory burdens that
  may or hamper deployment of full range services
  for the tribe?
• What are the biases of the vendors, of the tribal
  network techies, of the planners consultants?

8
Financing

• There are many ways to finance the
  infrastructure, and experts will address this
  loans, private investors, RUS loans, bonding,
  vendor financing, alliance schemesbe careful and
  understand that each option comes with a cost and
  a downside
• Firewall and protect your teleco enterprise and
  its revenues from the reaches of other tribal
  projects and from tribal politicspromote
  stability

9
Its Still all about Sovereignty

• Promote the self-governance of the tribe
• Increase economic opportunities
• Control technology and solution choices
• Become an owner, not a renter
• Look to rational financing and revenue returns
• Limit the liability of the tribe
• Build the future of the tribe and its children.

10
Help is Available

• Learning opportunities forums like this, FCC
  forums
• RUS, consultants who are here today
• The Mescalero Apache Telecommunications Company
  (MATI), the first tribal Teleco to try to teach
  other tribes about operating their own teleco
• Four Horizons Development Company, in partnership
  with MATI, helps tribes build telecommunications
  companies.

11
Thank You.
Eric Jensen
Four Horizons Development Company