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November 29, 2001
David Morris, 907-265-5396; dmorris@gci.com
Bruce Broquet, (907) 777-6660; bbroquet@gci.com
FOR IMMEDIATE RELEASE
GCI FILES REQUEST TO PROVIDE LOCAL TELEPHONE SERVICE IN 10
ALASKA COMMUNITIES
Kenai Peninsula and Fairbanks Communities on
List
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) announced
today that it has filed a request with Alaska Communication Systems
(ACS) to offer competitive local telephone service in the
communities of Nenana, Ft. Greely, North Pole, Delta Junction,
Kenai, Soldotna, Ninilchik, Homer, Seldovia and Kodiak. These
communities comprise the Glacier State study area and have
approximately 53,000 access lines.
"Residential and business consumers in Alaska have
overwhelmingly embraced competitive local telephone service," said
Gina Borland, GCI vice-president and general manager of local
services. "We look forward to further extending the benefits of
competition to other areas of the state."
Competition in the local telephone market was made possible by
passage of the 1996 Telecommunication Act. This law recognizes that
local telephone consumers are best served in a competitive market
and derive benefits such as lower prices, better technology and
customer choice.
GCI's announcement today comes three days after Alaska Superior
Court Judge John Reese affirmed the Regulatory Commission of
Alaska's (RCA) decision to allow local competition to go forward in
most of ACS' service areas. As a result of the recent Court
decision, competition is allowed to proceed. ACS is required to
negotiate, and if necessary, arbitrate an interconnection agreement
that will enable GCI and other providers to bring facilities-based
competition to these communities. GCI expects that service could
begin in some communities by fall 2003.
Since GCI first launched local telephone competition in 1997
consumers clearly have benefited. The price for the most commonly
purchased telephone package has dropped 30 percent in Anchorage.
GCI estimates this has saved its customers more than $10 million.
In addition, GCI has constructed alternative telephone facilities
utilizing a state-of-the-art digital switching platform connected
via high-speed fiber optic rings and other transmission
technologies.
This, in turn, has created the single greatest benefit of
competition, customer choice. Consumers are able to select the
service provider that best meets their needs. This is particularly
timely for Anchorage consumers since ACS recently raised its rates
24 percent. As a result, ACS customers not willing to pay the
increase are switching to GCI.
GCI is an Alaska-based integrated-communications provider
delivering voice, video and data services through its fiber optic,
satellite, hybrid fiber coax and metropolitan area network
facilities. More information about GCI can be found at
www.gci.com.
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