Alaska Communications Systems (ACS,) Alaska’s leading telecom provider, is significantly expanding its capabilities to serve the state’s growing $200+ million Enterprise market. Among other critical projects, ACS is expanding its network through a $175 million build-and-buy strategy in submarine fiber optics. The Anchorage-based company, which already offers Internet, wireline and wireless solutions to Enterprise and mass market customers in Alaska, is extending its best-in-class in-state data networks through the construction of the Alaska Oregon Network (AKORN) and the acquisition of Crest Communications Corporation, owner of the Northstar cable system. Key market drivers for this strategic investment include growing demand for fast, secure and reliable bandwidth, the state’s robust economy, Alaska’s remote geography and its high dependency on fiber optics, and the business opportunities ACS’ cable landing stations in Oregon provide.
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The Case for Investment More than most places in the United States, Alaska is heavily dependent on undersea fiber to stay connected with the rest of the world and to avoid being sidelined as technology rapidly advances. Terrestrial telecommunications circuits to Alaska are virtually non-existent, with a just a few, low-bandwidth microwave towers strung across Canada. Demand for bandwidth is growing in Alaska at
average rates of 40 percent a year – and likely escalating. The hunger for broadband comes from virtually every sector – from natural resource extraction industries to high school kids streaming video in their rooms late at night. Oil companies, for example, with exploration and production activities on the North Slope need to transmit 3D seismic images; hospitals in Alaska regularly send high-resolution MRI and other diagnostic test results to the Lower 48 for analysis by specialists; banks must share detailed and confidential financial records quickly and reliably; government officials require video conferencing to stay in touch with constituents. The list is virtually endless. To understand Alaska’s emerging data requirements, consider the oil industry. Petroleum dominates the state economy, contributing some 80 percent of revenues to the state treasury. This industry also provides a snapshot of Alaska businesses’ data transfer needs. The companies that produce North Slope crude oil use a concept called the “digital oilfield,” which integrates real-time production and drilling systems with modeling and simulation. As with most computer models, this electronic process generates a plethora of data that needs to be securely transferred and shared. A typical oil company might have 350 terabytes of data generated by 50 3D seismic projects. On a daily basis they may amass 10 terabytes in simulation models, 10 gigabytes from oil field telemetry and 4 terabytes of data tied up in