Can you hear me now? Verizon poised to enter Alaska competition
by dermotcole
 Dermot Cole
Aug 30, 2010 | 9166 views | 24 24 comments | 45 45 recommendations | email to a friend | print | permalink

 Verizon plans to enter the communications business in Alaska. The company is seeking approval to acquire the 700 megahertz spectrum in Alaska, which it already holds in most of the Lower 48.

 

“The transaction will allow Verizon Wireless, which currently holds no spectrum in Alaska, to provide voice, broadband data and other wireless products and services in a new service area," the company said in a filing with the Federal Communications Commission, reported on the website rcrwireless.com.

 

Verizon, the largest wireless company in the U.S., said the application is in the public interest because it will increase competition in Alaska. It intends to buy the license from Triad 700, a company that paid $1.8 million for the rights in a 2008 auction.

 

"Because Verizon Wireless holds no spectrum in Alaska, no competitive concerns are implicated with respect to the proposed assignment.  Triad has not yet begun to provide service over the spectrum that is the subject of this application, and therefore no customers are jeopardized or will lose service as a result of this transaction.  Moreover, the proposed transaction will increase competition in Alaska by allowing Verizon Wireless to enter Alaska markets as a new wireless competitor."

 

On its website, Triad had said it planned to "provide new and innovative competitive wireless services to previously under-served customers." The company boasted of holding a "very deep spectrum position in Alaska" that covered the entire state.

 

It said, the "700 MHz spectrum is the highest power, lowest frequency wireless mobility spectrum ever auctioned by the FCC. No lower frequency mobility spectrum is slated for auction in the future. Low frequency spectrum has superior propagation characteristics when compared to higher frequency spectrum like Cellular, PCS, MMDS or AWS. Radio signals at 700 MHz can travel greater distances, and can penetrate buildings and vehicles easier than radio signals at higher frequencies. Because of these advantages, wireless networks utilizing 700 MHz spectrum require fewer transmission sites, translating into cost and quality advantages for network operators."

 

"With the completion of the transition of broadcast television from analog to digital (completed June 12, 2009), 700 MHz licenses are now clear for initial deployment of mobility networks. This timing coincides nicely with evolutionary changes underway in broadband wireless network technology. This next generation technology will allow wireless networks to efficiently carry high volumes of data and voice traffic at a fraction of the cost of today’s networks. This next generation network efficiency, combined with the cost and quality advantages associated with 700 MHz spectrum, will put Triad in a unique position to be the low-cost provider of broadband wireless services in its coverage areas."

 

"Triad 700, LLC is controlled by Barry Lewis and Craig Viehweg. Non-controlling investors include M/C Venture Partners, Highland Capital, Ignition Partners, Battery Ventures and individual investors from the wireless industry."



Comments
(24)
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akdust
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September 01, 2010
neighbor72 - "I've been using Verizon up here in Alaska since 2005 and been completely satisfied. Working on the slope, many others that have ACS and ATT will lose service up there or not get their messages and I never have that issue. "

As you notice from the article, Verizon does not have their own towers in AK. When you are on the North Slope you are roaming on ACS equipment. So your great service up there is actually provided by ACS. If your friends up there have an ACS phone that is malfunctioning while yours is working fine, then that would most likely be a handset issue and not and ACS network issue.

mallardhen
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August 31, 2010
Here is the link for the new ACS coverage map for the lower 48.

http://www.acsalaska.com/personal/wireless/coverage-maps.asp

mallardhen
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August 31, 2010
"ACS's roaming partner in the L48 is verizon,"

This is no longer true. Check out ACS's new map of coverage in the lower 48.

I just brought my daughter down to college and the service was abyssmal! Absolutely horrible! It had been fine on earlier trips, so I started doing some checking and found the the map very different than before.

neighbor72
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August 31, 2010
In fact, I just spoke to a co-worker today who has ATT and he said he can't even use the internet on his phone while he's up here (Kuparuk). If I'm going to pay for a service...I want a service that works and Verizon has yet to fail me.
neighbor72
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August 31, 2010
I've been using Verizon up here in Alaska since 2005 and been completely satisfied. Working on the slope, many others that have ACS and ATT will lose service up there or not get their messages and I never have that issue. We have 3 Blackberry Storms in our family, all with unlimited texting, unlimited data and 1400 minutes per month shared for a grand total of $250 per month. Verizon to Verizon calls, nights (after 9pm central time for our plan), weekends and any calls made to any one of the 10 Friends and Family numbers that you list on your plan do not count against your minutes so we NEVER use the full 1400. I haven't been able to find a "local" plan that even comes close to what we have for the same or even close to the same cost. Plus, I can go in to my account online and change any of the numbers in my Friends and Family list any time I need to. I've looked, but like I said...there is no better plan for me to switch to.
Boodrow
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August 31, 2010
Verizon will come to Alaska for one reason. Not to compete with ACS and GCI but to compete with AT&T. They are at each others throat throughout the lower 48 and AT&T has had control here. Verizon would like to change that.
fbksknowitall
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August 31, 2010
"I think ACS and GCI are more expensive then ATT. Verizon would be good if it came up here. Most people have ATT not ACS or GCI, because there service is not as good."

ACS has the most coverage in Alaska, 3G and voice both. Second is ATT (much less 3G) and third GCI with minimal tower coverage. GCI has the lowest rates, but it looks like it is because of the subparr coverage. Right now Verizon roams on ACS and ACS on Verizon when out of state.

What would be good is if Verizon buys ACS, a win for everyone, they would have the best coverage and be able to provide the best phones too. The buying power of companys like ACS and GCI is much smaller then ATT and Verizon would fix that issue.
Shokd
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August 31, 2010
Competition? Alaska? Verizon's in for a fight.
territorial
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August 31, 2010
"ACS's roaming partner in the L48 is verizon, GCI/digitels is sprint."

Methodical, GCI's roaming partner is actually T-Mobile which is a GSM carrier. Digitel, a CDMA carrier would likely be with Sprint as you said.
swehrung
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August 30, 2010
marciaia, I'm glad you had a positive experience with Verizon. During my time in the lower 48, dealing with that company involved countless headaches and bad customer service. Canceling my service took at least five phone calls, all of them lasting two or more hours.
marciaia
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August 30, 2010
I brought my Verizon account with me from the Lower 48 when I moved to Fairbanks and have been 100% satisfied with all services since moving to Alaska. Prior to Verizon I had Sprint, and actually counted the days I could switch to Verizon due to mistakes in billing 20 out of 24 months that I had service with Sprint.

I'm excited that when Verizon offers services in Alaska I will be able to have a 907 number and continue to receive the same outstanding service.
Supertramp
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August 30, 2010
Yeah, I agree with you there. My experience with it last month was so I could have one at home, and one at work. I like to plug my phone into my computer speakers and stream Pandora. Of course I'd rather put Pandora on the computer, but it's one of the few blocked sites...
swehrung
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August 30, 2010
Indeed, history, along with the Alaskan jobs they support.
blue5011
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August 30, 2010
"Verizon's presence would gradually squeeze out these local companies."

Yes, if they cannot compete they are history. Do you really want to drive a AMC Gremlin today?
blue5011
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August 30, 2010
"And making someone who is just buying a charger wait in the same line as people getting new service or who have billing issues is not a good idea."

My brother, who lives in the lower 48 and has Verizon service tells me he has not bought a new charger in years. If you don't upgrade your phone/ you don't need a new charger.
Yota99714
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August 30, 2010
If Verizon sucks road apples as badly as Sprint, then don't bother coming here.
whataworld
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August 30, 2010
swehrung

If ACS and GCI have such great service and lower prices then the national carriers why would Verizon drive the out? I think ACS and GCI are more expensive then ATT. Verizon would be good if it came up here. Most people have ATT not ACS or GCI, because there service is not as good.
Methodical
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August 30, 2010
Acquisition of spectrum does not make for a competition. It would be highly redundant for verizon to overlay a network where Digitel, Acs, and ATT are already fighting for so few subscribers.

Verizon could lease the spectrum to ACS, who will roll out a 4G network (eventually). Verizon gets to continue to brag about alaska coverage, ACS gets to brag about L48 coverage. best of all for both companies, they will continue to use the same tower and handset gear, thus maintaining compatible roaming coverage in the future.

ACS's roaming partner in the L48 is verizon, GCI/digitels is sprint.
swehrung
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August 30, 2010
Shokd: ACS and GCI have excellent roaming service in the lower 48 and their rates are lower than the national companies. ACS and GCI are not national companies doing business in Alaska like you say. They are both publicly traded companies solely based in Alaska. Verizon's presence would gradually squeeze out these local companies.
phishnthegd
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August 30, 2010
Verizon will setup towers in Anchorage, Fairbanks, and Juneau. Then they will continue their roaming agreements they currently have in place in the rest of the state. This deal will do nothing to increase coverage in the state, just in the big three.
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