Feasibility & Financial Planning

1. Feasibility & Financial Planning Eric Jensen Four Horizons Development Company

2. What is a Feasibility Study • A feasibility study looks at what the Tribe’s needs are and proposes how to meet those needs; • A telecommunications feasibility study should answer the question why this project is important to the tribe, how it will change the way things are done, what role and stake the tribe has in the process, and how it will accomplish this project; • A good feasibility effort will also work with the tribe to see how it can afford the project and manage change on the reservation.

3. Why is this Important:The Analog Divide • Where are the Tribal Communities? 96% of American Families; 86% of Minority Families; 75% of Rural Families; 50-65% of Tribal Familes have access to dialtone • The Navajos (800,000 population): 27% • Impact: Life & Safety; Economic Opportunities Lost; Lifestyle Disparity • The Poor & Elderly: Isolation

4. The Broadband Divide • There is no Broadband in Rural Tribal Communities: Why is that Important? • Broadband is a tool for the Tribal Government to govern better, manage better, serve better, preserve better, and expand better; (Navajos) • The World is Changing Rapidly: the capacity of computing doubles every 18 months; lack of broadband affects Federal grant opportunities;

5. Tribal Challenge: Past, Present & Future • Tribe Lacks the platform for economic development; • The Tribe lacks the tools to preserve traditional culture, language, families, and community • Tribal youth: face leave or perish decisions; learning disparities; opportunity deficits; • Entrepreneurs and Enterprises can do directly into the global marketplace • The Tribe itself is an Enterprise

6. The Tribal Will: Feasibility Assessment • Key Question: Should the Tribe take more control over telecommunications options and services? • Before Budget & Technology Considerations: Examine the need, the reasons, and the will for longterm commitment; • Tribal Barriers: Politics, Changing Administrations, Budget Capabilities; Competing Priorities & Debts

7. External Barriers • It’s all about Money: A. Is there a Revenue Model that can Sustain Rural Tribal Telecommunictions Services? B. Can the Tribe Afford the Capital Startup? C. Will the Tribe Reap Other Financial Benefits? • Regulatory Hurdles: Feds & States • Carriers do not want Competition • Tribes do not have the Know-How & Skills

8. A Feasibility Study Triggers A Tribal Assessment Process • What is the Tribe trying to accomplish? Is there community & political support? • Are there other cheaper and simpler means of accomplishing this: the network model, the renter model; the spendthrift model; • What will the infrastructure design be? • How much will the structure & service Cost? • Can the Tribe afford this? How will it be paid? • Can the Teleco service pay for itself? • What steps will the Tribe have to go through?

9. What Are The Unique Features of a Tribal Decision? • What are the Sovereignty Considerations of starting a Tribal Telecommunications Service? Liability; Control; Regulatory forums state vs fed; • Are there Tribal Code modifications required? • Are there unique financial considerations between a Tribal Teleco and a Carrier? • Are there unique advantages that having a tribal teleco will bring the tribe; non-Indian customers?

10. Key Considerations • Does this tribal strategic approach protect and enhance tribal sovereignty; • Are there any unique tribal requirements that are part of a feasibility consideration and study; • What are the regulatory choices to make and impact? Fed. Vs. State forum. • Will the plan take into account the Lifeline and Linkup opportunities for the tribe; • Are the consultants experienced in conducting or looking at every aspect of a tribal teleco startup?

11. We can answer your questions. Thank you. Eric Jensen Four Horizons Development Company