Federally funded Internet access to be cut off for Navajo Nation

When it looks like things couldn't get any worse, OnSat Network Communications is expected on Monday to pull the plug on thousands of Internet users who reside in Navajo Nation. Residents use the wireless connection of reservation chapter houses after they get home from work or school.

Navajo Nation is a 27,000-square-mile Indian reservation spread across Arizona, New Mexico and Utah, and is home to more than 175,000 residents.

An internal audit conducted last year revealed OnSat may have double-billed Navajo Nation, which led to questioning about the bids for Internet contracts. Last month, the Universal Service Administration Co. (USAC), which monitors the service and operates under the Federal Communications Commission's E-rate program, told Navajo Nation it will withhold a $2.1 million payment to the Internet company.

Withholding the funds, according to an attorney from OnSat, meant the company would not be able to pay a subcontractor for satellite time for the Internet service.

The USAC helps the tribe receive 85% to 90% reimbursement from the FCC for the Internet service for 70 of 110 tribe chapter houses spread across Navajo Nation.

The USAC sent a letter on March 28 to Navajo Persident Joe Shirley Jr., stating money would be withheld from OnSat for the 2006-2007 billing year due to overbilling and possible federal violations after the tribe allegedly did not choose the cheapest Internet service and equipment.

Navajo Nation has until May to respond to the accusations. OnSat will continue offer service to the Division of Public Safety and Office of the President and Vice President, which do not operate with FCC money.