Navajos Could Lose Net Access
FCC Grant Dispute Threatens Public Safety Communications

By Holly Watt
Washington Post Staff Writer
Friday, August 1, 2008; Page A08

http://www.washingtonpost.com/wp-dyn/content/article/2008/08/01/AR2008080102863.html?nav=rss_technology

A large swath of the sprawling Navajo Nation could lose access to the 
Internet today, in a dispute that threatens services from personal 
e-mail to police radio communications on the 27,000-square-mile reservation.

The Navajos' problem stems from a funding battle over whether an arm of 
the Federal Communications Commission will continue to pay grant money 
to the tribe's Internet provider.

"The situation has become critical and threatens the safety and security 
of the Nation and its residents," New Mexico Sens. Jeff Bingaman (D) and 
Pete V. Domenici (R) wrote to the FCC two weeks ago. "We are deeply 
disturbed by this imminent loss of communications service to vital 
public safety agencies."

In a letter to the nonprofit agency that administers the grant, Joe 
Shirley Jr., president of the Navajo Nation, wrote that "in just a few 
days, the Navajo Nation will lose its entire communications network, 
including its public safety network, as a byproduct of USAC's 
mishandling of this matter," referring to the agency, Universal Service 
Administrative Co.

Hundreds of Navajo students will be unable to finish online courses, he 
said, and "sadly, mothers are also no longer able to reach out and 
communicate with their children at war in Iraq."

The tribe of about 250,000 people already has lost Internet service to 
libraries and community centers known as "chapter houses," and has 
little access to cellphone service on a reservation that stretches 
across parts of Arizona, New Mexico and Utah. Most Internet access there 
is provided via satellite, which is due to be shut off. Much of the 
Navajo Nation is inaccessible to land lines.

USAC, which administers billions of dollars in FCC grants every year to 
provide Internet service to rural areas and low-income consumers, is 
refusing to continue funding after an audit by the tribal government 
revealed questions over payments by the Navajos to their Internet 
provider, OnSat. As a result, another company, SES Americom, which 
provides satellite services to OnSat, is scheduled to pull the plug today.

USAC says the provider is under investigation, after the audit raised 
questions about the bidding process and possible overpayment. But the 
provider rejects the findings and plans to fight them in tribal court.

The Navajo Nation Department of Justice has launched an inquiry and 
barred employees from talking about the issue for 60 days.

Jim Fitting, an Albuquerque lawyer who represents OnSat, said the 
company could no longer subsidize the satellite services without funding 
from USAC. A spokesman for SES Americom said that its contract with 
OnSat had run out and that it already had granted the company several 
extensions.

Eric Iversen, a spokesman for USAC, said that "an internal Navajo Nation 
audit conducted during the summer of 2007 found problems with the 
contract between Navajo Nation and OnSat and the bidding process that 
led to it."

Losing Internet access would be a critical communications setback for 
the Navajo, said Catherine Banker, president of the E-Rate Service 
Providers Association, a trade association for companies that provide 
services to schools and libraries through USAC funding.
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