(AP) ANCHORAGE – The wireless picture in Alaska entered a new era last week with the long-awaited announcement that Verizon has flipped the switch and entered the market in Fairbanks, Anchorage and Juneau.
Verizon, the largest wireless company in the U.S., with nearly 100 million customers, said its Lower 48 prices would apply in Alaska.
Data services will be available on its new high-speed 4G LTE network, while voice traffic will temporarily remain on the networks of the companies it partners with in Alaska.
The company said its official kickoff date is Friday, with wider commercial availability in July.
Vice President Demian Voiles said in a phone interview that for smartphone users accustomed to a 3G network, the difference is like switching from a “one-lane road to a 10-lane superhighway.”
He said downloading email or opening Web pages or watching video would all be faster than before.
“If you are streaming a video on a smartphone or a tablet, previously in 3G you would start it and sometimes it would stop and buffer, then it would pick back up. On LTE when you launch a video, it starts right away and there is no buffering,” Voiles said.
Verizon began its preparations for Alaska operations in 2010 when it purchased part of the radio spectrum and has been developing a network in the state’s major population areas since then.
With the impending decline in those roaming fees, ACS expects a significant impact on its business. Roaming fees have amounted to 15 percent of its total revenue in recent years.
“Additionally, our retail customer base will now have a choice for services from another national provider and we expect our customer base may erode,” ACS told the SEC earlier this year.
AT&T and Verizon, have “significant competitive advantages associated with device availability, content and footprint that can be packaged with their wireless offerings.”
In preparation for Verizon’s arrival, ACS and GCI proposed an agreement under which the wireless assets of GCI and ACS would be merged in a new entity called The Alaska Wireless Network.
“We entered into this agreement to provide a robust, statewide network with the spectrum mix, scale, advanced technology and cost structure necessary to compete with Verizon Wireless and AT&T Mobility in Alaska,” GCI said in a filing with the Securities and Exchange Commission March 31.
ACS said the two wireless networks are “highly complementary,” with GCI providing good coverage in rural markets and allowing both companies to be stronger competitors.
GCI is the dominant provider of video services to Alaskans with about 140,000 wireless subscribers while ACS has 114,000 wireless customers.
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