Alaska Wireless Network Joint Venture Moves Forward

Alaska Communications and General Communication (NASDAQ: GNCMA  ) -- also known as GCI -- have finalized the transaction they proposed last summer to form The Alaska Wireless Network, or AWN, both companies announced today.

The telecoms have contributed their respective spectrum licenses, cell sites, backhaul facility usage rights, and the other wireless assets needed to produce and operate a wireless network that they say will be able to serve more of Alaska's population than any other mobile operator's networks can cover. Alaska Communications will own one-third of AWN and GCI will own the rest.

"The wireless business is capital intensive, requires scale to compete successfully against national carriers, and demands more spectrum than either of our two companies individually owns," said the CEO of Alaska Communications, Anand Vadapalli, and the CEO of GCI, Ron Duncan, in their joint statement. "By combining our respective wireless assets, we can provide a state-of-the-art Alaska wireless network owned and operated by Alaskans for Alaskans." That's the same statement they released last June in announcing the venture.

Alaska Communications will get $100 million in cash and be eligible to receive preferred distributions totaling up to $190 million over AWN's first four years. GCI will receive any remaining distributions after that for the same period. Profits thereafter will be distributed on a pro-rata basis.

Though the two companies will both use the AWN, they will each sell that network's services to their own retail customers and continue to compete as rivals in the Alaskan wireless market.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2552236, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:23:00 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
GNCMA $13.30 Down -0.11 -0.82%
General Communicat… CAPS Rating: ***
ALSK $1.69 Down -0.06 -3.43%
Alaska Communicati… CAPS Rating: ***