Alaska’s mobile market is set for consolidation as General Communications Group announced plans to acquire Alaska Communications Group’s customer base and stake in their Alaska Wireless Network partnership for $300 million.
The deal calls for GCI to pick up ACG’s approximately 109,000 wireless customers, bolstering its mobile customer base to approximately 250,000 subscribers and reinforcing its position as the state’s No. 2 operator. Those customers are expected to be transitioned to GCI’s network by the end of the first quarter of next year.
GCI also will gain full control of the AWN venture, which was formed in 2012. The venture was created to design and operate a statewide wireless network providing “next-generation” services to GCI and ACSG customers, with both companies continuing to market and sell services independently. GCI and ACSG contributed their respective wireless assets to the venture, including spectrum licenses, cell sites, backhaul capabilities, switching systems and other assets. Wireless licenses involved in the transitions included spectrum across the 850 MHz, 1.7/2.1 GHz and 1.9 GHz bands.
GCI, which provides cable television, fiber-based broadband, satellite and wireless services, in 2007 acquired state rival Alaska Wireless.
Verizon Wireless last year announced plans to enter the Alaska market through an LTE in Rural America agreement with KPU Telecommunications, which increased competitive pressure in the Alaska market.
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