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| GCI will pump $100 million |
Date: Saturday 12 January, 2008
FOR IMMEDIATE RELEASE
January 12, 2008 - GCI will pump $100 million into network
A $100 million plan to construct a wireless network across the state in the next few years, announced by General Communications Inc. this week, laid the foundation for the company to reach cellular network independence.
The move comes on the heels of AT&T's $2.8 billion buyout of Dobson Communications Corp., which operated in Alaska and 16 other states as Cellular One until it was bought out in November, paving the way for iPhone service in Alaska. Dobson and GCI had a business partnership in Alaska.
"It's a byproduct of AT&T's acquisition of Dobson," said John Lowber, GCI's chief financial officer. "We were both providing value to each other. Now they have their own distribution plants, so they don't need to use ours anymore." An agreement between GCI and AT&T, reached Dec. 3, will allow GCI customers to use AT&T's wireless network for local and roaming access until a four-year transition period to segregate the services' networks ends June 30, 2012.
GCI currently owns the ground network, while Dobson owned the cell site network, Lowber said. Several years ago the companies contracted to share each other's services. GCI had hoped to buy Dobson's assets in Alaska, but AT&T bought the whole company, more than GCI was interested in bidding on, Lowber said.
AT&T was already in Alaska offering long-distance phone service. With its Dobson deal now done, it is cheaper and more efficient for it to use its own ground network rather than GCI's, said AT&T spokesman Mike Felix.
"As AT&T completed its purchase, it looked sort of broadly at what would be cost-effective," Felix said. "In this particular case, it's cheaper for us to run (traffic) on our own network."
The agreement calls for the end of AT&T's obligation to purchase network services from GCI by July 1. While the separation is under way, AT&T will allocate a block of wireless network usage at no charge to ensure GCI customers will not lose service.
Dobson traffic on the GCI network accounted for $25 million in revenue in 2007, according to GCI.
GCI in recent years has invested heavily in a separate wireless-phone business. It now owns about 80 percent of Anchorage-based Alaska Digitel and plans to buy the remaining interest in the company for about $10 million, pending Federal Communication Commission approval.
Its wireless plans call for spending $60 million in construction for the network this year, with the rest of the $100 million spread evenly over the next two years, the company said. GCI is anticipating $220 million in overall capital expenses this year. The transition between networks won't affect customers' cell phone service, Lowber said.
Media Source: http://www.adn.com/news/alaska/story/262518.html
Alaska DigiTel began providing CDMA wireless communication service in the state of Alaska in November of 1998. Alaska DigiTel provides 100% digital service in Greater Anchorage, the Mat-Su Valley, Fairbanks, Juneau and the Kenai Peninsula. Our fundamental goal is to provide customers with the best in wireless communications and personalized customer service. We live, work, and play in the communities we serve. We are constantly increasing our coverage area in the state of Alaska and adding new services for our customers. We carry a wide range of phones and accessories in each of our stores and offer the best in customer service. |
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