ideo calling, telehealth, telework, and distance learning used to be science fiction. The onset of the COVID-19 pandemic made those fantasies an everyday reality, where people live-stream everything from business meetings and conferences to medical appointments, classroom sessions, and family gatherings. People were also uploading files they would typically present in-person to colleagues, teachers, or doctors. High-speed internet eased the disruption of the pandemic by keeping some sense of continuity, yet people without fast, reliable connectivity quickly found themselves at a disadvantage. Though many have returned to physical offices and classrooms, telecommunication companies in Alaska continue to see a growing demand for improved services.
All three companies agree that the pandemic accelerated the demand for faster networks. Business and residential customers required high-speed access to keep up with emerging internet applications and services, says Matt Peterson, Quintillion’s chief technology officer, and Mac McHale, Quintillion’s chief revenue officer.
Jim Gutcher, vice president of strategy and product management for Alaska Communications, says before the pandemic, the average consumer used the internet for email, web browsing, and streaming—activities that primarily relied on download speeds. However, consumer behavior shifted dramatically at the onset of the pandemic as schools and workplaces went remote.
“The ability to share bandwidth with family members and fast upload speeds became more important than ever,” says Gutcher. “A fast upload speed is essential for activities like video conferencing and remote schooling.”
“It’s a reliance that much of the Lower 48 just discovered during the COVID-19 pandemic,” says Lori Davey, vice president of GCI business sales. “In Alaska, we do so out of necessity, and we’ve done it for decades. Connectivity makes it possible.”
How does Alaska’s connectivity compare to the Lower 48? The answer varies between providers. GCI says Alaskans have access to some of the highest internet speeds in the nation, with 80 percent having access to 2 gig (2,000 Mbps) internet speeds, twice as fast as the Lower 48. Quintillion places Alaska in the bottom 5 percent, citing a digital divide that has deepened in rural communities during the pandemic. Alaska Communications echoes a problem with a digital divide, where there is less coverage and slower speeds compared to the Lower 48.
Providing broadband in Alaska requires overcoming harsh climates, expansive terrain, low population density, limited construction and operation capabilities, and high power, transportation, and fuel costs. Gutcher says connecting rural areas requires heavy investment in the middle mile and last mile. The middle mile, or backhaul, is the segment of the network linking its core backbone to a local area. The last mile refers to the network components that deliver connectivity within a local area to the customer.
“Bridging the digital divide requires long-term investment, including investing in accessible and affordable middle-mile infrastructure,” says Gutcher.
Even once the infrastructure is in place, Davey says different challenges are associated with maintenance. She says it’s not unusual for a technician to travel a whole day to a remote location to conduct repairs. GCI techs often rely on snowmachines or helicopters, depending on the tower’s location, and have go-kits with supplies if they need to stay overnight.
“Our techs must be incredibly prepared,” says Davey. “If they forget a tool or key equipment, it could be days before they can return to complete the job.”
Davey adds that delivering connectivity in Alaska requires an extensive toolkit, a high degree of commitment, and innovation to overcome the challenges of building and maintaining telecommunications infrastructure in the state. It also takes a combination of technologies used by multiple providers, including fiber, microwave, and satellite.
Vice President of Strategy
and Product Management
ACS
How people work, learn, and play in a post-pandemic world will most likely include increased online activity. Gutcher finds that consumers and businesses rely more and more on digital infrastructure, which drives improvements among service providers. Likewise, he says it also drives companies like Alaska Communications to invest in new tools and solutions, such as LEO satellites and wireless technologies. With technology evolving faster than ever, Davey says it’s crucial for Alaska to remain at the cutting edge of that technological wave.
“Our work will never be done,” says Davey. “Our networks will never be complete. There will always be improvements to be made, fiber to be laid, towers to be built, and new technologies to implement.”
Vice President of Business Sales
GCI
Funding for expansion projects also comes from a variety of sources. Most GCI upgrades come from its capital. Over the past forty years, Davey says GCI has invested more than $3.5 billion in its network and facilities in Alaska. In addition to using capital funds, Alaska Communications has also taken advantage of grant-funded opportunities to connect underserved Alaskans. Most recently, Alaska Communications worked with several tribal corporations to apply for a National Telecommunications and Information Administration (NTIA) tribal broadband grant that would connect approximately 12,000 rural Alaskans in twenty-three communities along the Yukon and Kuskokwim Rivers to high-speed internet for the first time. The recent passage of the federal infrastructure bill also opens the door to new funding opportunities.
How projects are funded will influence how much customers pay for service, as will the number of subscribers across the state. Though GCI and Alaska Communications don’t publish the number of subscribers, Davey and Gutcher say the goal is to reach the most people at a competitive price point. Peterson and McHale further explain that pricing is a result of, and driven by, cost. Given the challenges of building in Alaska without government subsidies for capital and operating costs, Quintillion’s expansion into rural areas with urban-level pricing is unlikely.
“With targeted and proper subsidies, expansion becomes possible, and prices will reach competitive levels,” says Peterson and McHale.
Since the pandemic began, new internet service providers have started popping up around Alaska. In October 2021, Pacific Dataport announced a 2022 launch of its Aurora 4A satellite to provide better internet service to Alaska. Two months later, the Central Council of Tlingit and Haida Indian Tribes of Alaska received an exclusive license from the FCC to use a mid-band broadband spectrum in several Southeast Alaska communities. The tribe’s broadband network is called Tidal Service, and its mission is only to serve communities without access. There are also several smaller existing providers across the state attempting to fill holes where they exist.
However, competition is a good thing among internet service providers. Gutcher says consumers and businesses in Alaska want choices, reliable solutions, and excellent customer service. Achieving this requires constant improvement, often spurred on by competition. Davey adds that competitors often end up being valuable partners. She says internet service providers are all doing their best to provide Alaskans with the highest level of connectivity.
“While there’s certainly a level of competitiveness, it also requires a significant amount of collaboration to ensure Alaskans throughout the state have access,” says Davey. “We can’t do it alone.”