Internet choices in Alaska
Posted on August 14th, 2007 in Alaska Business, Technology |
One of the primary motivators for the creation of this blog stemmed from my continuing distaste for the state of ISP (Internet Service Providers) offerings in south central Alaska. Before I dive headlong into a diatribe about the dismal state of Internet access in the Last Great State, allow me to explain how I arrived at the conclusion that “it sucks”.
I won’t go into a long work history in this post, but late in 1997, I landed a job as the New Media Director for the first major ISP in Alaska (Internet Alaska). In short, I’ve been around a while and have some insight to how the Internet got its start up here. (about me)
The Competitors
I’m not sure calling them competitors is a true representation of the relationship between the ISPs in Alaska, but here’s a quick glance at the consumer options here in the Anchorage, Eagle River, Palmer and Wasilla area.In my opinion, we Alaskans have limited choices and have continued to pay exceptionally high prices for mediocre services. The following will attempt to highlight my opinion, observations, comparisons and conclusions about the state of our Internet choices in Alaska:
GCI (General Communication, Inc.)
www.gci.com
GCI is the only choice for local cable TV and cable Internet access. In the past, GCI was credited for being the champion of choice and competition against the incumbent telecom provider - they started as a telephone long-distance company nearly an eon ago.
Pros
It’s cable
Relatively stable
Good network management (except for the slow DNS updates)
Cons
Expensive (low price/performance ratio)
Usage charges
Forced “package” deals that limit choice
No competitors
I was partially responsible for the current state of Internet offerings at GCI, so I know what I’m talking about. As a product manager inside GCI from 2000-2005, I helped develop the current bundling plans, download speeds, pricing, etc. Even then I was pushing for higher upload speeds and no restrictions on usage. The executives insisted on protecting their precious cable TV, long distance and local phone services and “bundling” was born to force the consumer to buy unwanted services in order to get the best Internet products. Don’t believe it? Try getting cable TV, no local phone or long distance and an unlimited download Internet plan. Even better, try to buy Internet only and see what it will cost!
Having just returned from the Seattle area and using Comcast services for nearly a year, I can say that GCI is overpriced, slow and restrictive. To get the equivalent Internet services in Alaska that I used in Seattle for just about $55.00 per month would cost a MINIMUM of $500.00 per month from GCI.
ACS (Alaska Communications System)
www.acsalaska.com
ACS is the transformed version of the incumbent telecom and primary provider of POTS (Plain Old Telephone Service). They own the vast majority of the copper wire and sell DSL services over their lines. Cellular provided Internet services are also available from their wireless division, but I won’t be discussing that mess in this post.
Pros
Less restrictive usage policy
Slightly less expensive than the cable provider
Cons
Older DSL technology
Slow speeds
Limited reach
Still expensive
Notoriously bad customer service
In truth I am not nearly as educated about all things ACS, but I do have some history with them. I was working for the ISP that ACS acquired back in 1999 and followed the changes of the company after that. Currently managed by several big whigs from the Lower 48, ACS is still struggling to provide adequate Internet access.
Unless you have no other option, ACS’s DSL offerings are so completely lame, slow and worthless - I can’t see why anyone would consider their product at all. The combination of low speeds, poor network management, crappy pricing and limited reach pretty much makes ACS a completely worthless Internet offering. It also doesn’t help that ACS’s customer support is abysmal. I sent a request for business internet pricing over 6 weeks ago and have yet to see any response. Great way to be competitive, huh?
MTA (Matanuska Telephone Association)
www.mta-telco.com
(updated 20 august 2007) I nearly left out the incumbent Telco for the “Valley”! MTA is a locally owned cooperative that serves up a cadre of digital delivery and plain old telephone services. MTA uses their copper lines to deliver voice, data over DSL and digital TV.
My experiences with MTA have not been terrible, but I will say that their prices for DSL are not cheap, plus they really hit you BIG TIME for DSL usage. I recently used their DSL services in Chugiak, Alaska and was hit with more than $170 in USAGE charges alone (not including the $65/month for 768Kbps access).
Basically, my sense about MTA is that they are the only choice for many people and will charge whatever they damn well please. However, now that GCI is reaching farther into their territory - maybe they’ll increase the performance to match the price. I’m not going to hold my breath.
AT&T Alascom
www.attalascom.com
Somehow AT&T has managed to hang on to its Alascom name and roots in Alaska. I’m sure they’re providing some managed data services for government and business - but for a consumer product they are basically a non-entity. In short, AT&T is not a player in the consumer market *yet*.
Rumor has it that AT&T may be replacing the current cellular provider at the end of 2007, which *may* bring a more prominent consumer offering to the Internet side. AT&T announced the launch of WiMax services in Juneau recently, so there may be a new player in town by 2008.
Clearwire
www.clearwire.com
One interesting twist in the local market is Clearwire. I know for fact that they buy their data connection from GCI and should have a pretty good connection to the rest of the world. The downside of Clearwire is the limitation of their performance.
Pros
Decent pricing (at least on the surface)
Relative mobility
Cons
Some hidden costs
Still mediocre performance
I followed the rollout of Clearwire from their first implementation in Florida and anxiously awaited their growth across the nation. After hearing from friends and associates about their Clearwire experiences in Alaska - I would give them a “C” rating. For the money, the terrestrial solutions are probably still the better solution (even if they suck too). Clearwire would be my choice if I had limited need for upload speeds and could not get cable Internet in my location.
TelAlaska
www.telalaska.com
Essentially a non-player in the urban markets of south central Alaska, TelAlaska offers limited WiFi 802.11 services and some DSL products. I really don’t have much experience with them, but would not consider them to be a viable competitor in the consumer market.
Last thoughts
There are a few other small providers that I may have overlooked, but in general the only players in town are ACS and GCI. With only two local players, each owning their own wires and network, somehow we are still unable to get a truly competitive market.
As much as I value Alaska owned businesses and the independence it can provide from mega-corporations, we are way past due for a REAL competitor. I know Alaska is a tiny market for most of the national companies, but I would greet them with an open wallet. (And this comes from someone who has not been inside a Wal-Mart for more than 3 years).
For now, I say we bombard the local providers with requests to drop their restrictive policies, increase the performance and lower their prices. Will they listen? Probably not, but it sure feels good to bitch about it.
/kk
