Alaska Communications Systems Group, Inc. provides integrated communications services to business and consumer customers in Alaska. The company’s communications network extends throughout the major population centers in Alaska connecting customers to its network, which provides broadband, managed information technology (IT Managed Services), voice and other services to these customers and to the contiguous states through its own terrestrial network, which includes its two undersea fiber optic cable systems. Markets, Services and Products The company’s focus is on three categories: Business and Wholesale; Consumer; and Other Services (including access services and high cost support services receiving federal support funding). Business and Wholesale The company provides services, such as voice and broadband, and IT Managed services, including remote network monitoring and support service, managed IT security and IT professional services, and long distance services primarily through the company’s own terrestrial network. The company’s business customers include small and medium businesses, larger enterprises, and government customers, which include municipal, local, state and federal government entities, school districts, libraries and rural health care hospitals. The company’s acquisition of TekMate, LLC is an example of the company’s strategy to provide increasing levels of IT Managed services to business customers. Its wholesale customers are statewide, national and international telecommunications carriers who rely on the company to provide connectivity for broadband and other needs to access their customers through its Alaskan network. Consumer The company also provides voice and broadband services to residential customers. Other Services The company provides voice and broadband origination and termination services to inter and intrastate carriers who serve its retail customers. It also assesses monthly surcharges to its customers, as required by various state and federal regulatory agencies, and then remits these surcharges to these agencies. The company also receives inter and intrastate high cost universal support funds and similar revenue streams from state and federal regulatory agencies that allow the company to partially recover its costs of providing universal service in Alaska. Dispositions In February 2015, the company sold its wireless operations, which included the sale of both its one-third interest in the Alaska Wireless Network (AWN) and the company’s wireless customer contracts, but excluded the wireless backhaul contracts that the company entered into after the formation of AWN. Seasonality The company’s revenue is impacted by seasonal factors. This is due to Alaska’s northern latitude and the resulting wide swing in available daylight and weather conditions between summer and winter months. These conditions, unique to Alaska, affect business, tourism and calling patterns in the state. The company’s spending patterns are also impacted by seasonality as it incurs more capital spending and operating spending during the summer and early fall periods of the year reflecting the heightened economic activity from the summer months and the company’s own construction activities during this time period. Regulation The telecommunications services that the company provides are subject to extensive federal, state and local regulation. These regulations govern, in part, its rates and the way that the company conducts its business, including the requirement to offer telecommunications services pursuant to nondiscriminatory rates, terms, and conditions, the obligation comply with E-911 rules, the Communications Assistance for Law Enforcement Act, the obligation to safeguard the confidentiality of customer proprietary network information, as well as the company’s obligation to maintain specialized records and file reports with the Federal Communications Commission and state regulators. The company must comply with the Communications Act and regulations promulgated thereunder, which require, among other things, which the company offers regulated interstate services upon request at just, reasonable and non-discriminatory rates and terms. Competition For traditional voice and broadband services, the company competes with General Communications and AT&T on a statewide basis; and smaller providers, such as Matanuska Telephone Association, Inc. on a more localized basis. History Alaska Communications Systems Group, Inc. was founded in 1998. The company was incorporated in 1998 under the laws of the state of Delaware.
alaska comm systems group
600 Telephone Avenue
Anchorage, AK 99503
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