Company Name: Alaska Communications Systems Group, Inc.
Stock Market: NASDAQ (ALSK)
Industry Sector: Telephone Communications
Key People: Liane Pelletier (Chief Executive Officer, Chairman of the Board and President), David Wilson (Senior Vice President and Chief Financial Officer)
Headquarters Address: 600 Telephone Avenue
Anchorage, Alaska 99503-6091
Number of Employees: 986 regular full-time employees
Website Address: www.alsk.com
Company Overview
Alaska Communications Systems Group, Inc., a Delaware corporation, is Alaska’s principal provider of communications services, including residential and small business customers. The company has two business segment, wireless and wireline. The wireless segment offers data and voice products and services and other significant equipment and services across Alaska. On the other hand, the wireline segment conducts activities, such as providing communications services, which includes data, voice, broadband, multi-protocol label-switching services, network access, long distance and other services, to consumer carriers, businesses, and government customers in Alaska. It consists of one of the most expansive networks there . This includes the only operating “third-generation” wireless network in that state today.
This company was formed in 1998 under the laws of the State of Delaware. The business started to operate as Alaska Communications Systems Group, Inc. in May 1999. Subsequently, the company acquired the assets of Anchorage Telephone Utility and CenturyTel’s Alaska.
Current Financial Overview
As a result of the growth of the DSL subscriber base of $1.6 million, and a $1.2 million increase in long-distance sales, the retail revenue of the company increased by $2.3 million or 2.4% in 2007. These revenues were offset by the decrease in local exchange revenue, of $0.6 million, which was mainly associated with residential line losses, and the $0.7 million decline in dial-up ISP revenue. In addition, because of wireless substitution and competition, the retail switched-access lines in service also declined by 4.7% in 2007. T he wholesale revenue declined by $1.8 million, or 7.1%, in 2007. This was due to the decrease in wholesale local revenue and UNE of $2.9 million. The primary cause was the lease of ongoing migration of lines to the company’s competitor for cable telephony. Losses were offset in part by increased revenues from billing and collection, and power and space services.
Meanwhile, the revenues from network access were higher by $6.4 million, or 6.8%, in 2007. In addition, $8.0 million, or 44.7% in 2007, was due to the increase in enterprise revenue. This was the result of $3.0 million in revenue from the virtual network facilities to lower-48 carriers for long-distance line termination; $2.4 million from the agreement of capacity exchange with other carriers; $1.5 million from higher sales of advanced network services to large business and government customers; and $1.0 million of sales on the terrestrial fibres. Wireless revenue also increased for the year ended December 31, 2007 by $22.2 million or 19.2%, to $137.5 million as compared to $115.4 million for the year ended December 2006. This was primarily due to growth in average subscribers, an increase in average ARPU, higher phone and accessory sales in the year ended December 31, 2007, and increased revenue from Alaska Communications Systems Group, Inc. customers.
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