Alaska
Federal program poised to provide $629M to boost internet access across Alaska
The state has won a key federal approval for its plan to award nearly $630 million to more than a dozen companies to help modernize internet service in Alaska.
The money represents the largest single chunk of federal funds ever committed to improving online access across the state, officials said.
It will extend high-speed internet to more than 46,000 homes and businesses in the state, bringing at least 100 megabyte download speeds to areas currently considered “unserved” or “underserved” when it comes to digital connectivity.
Many are located in rural sections of the state. But the program will also be deployed in the outskirts of Anchorage and other cities, improving service to houses and cellphones.
Once built, the projects will transform life even in Alaska’s most remote corners, Gov. Mike Dunleavy said in a statement.
“This will open up new opportunities for Alaskans to access jobs and education, start new businesses, and connect with healthcare providers in real time, which has not been possible until now,” he said.
The money is part of the Broadband Equity, Access, and Deployment program, or BEAD.
Created in the bipartisan, Biden-era infrastructure bill, it seeks to bridge the nation’s digital divide.
The Alaska Broadband Office still awaits one last federal approval that’s viewed as a formality, officials say. But the 15 award recipients, ranging from the state’s largest telecommunications company to small tribal entities, should begin receiving final approval for the awards in the coming months, they say.
The companies plan 29 projects to deliver fiber, wireless or satellite services, or hybrid versions.
Large providers, such as GCI and Alaska Communications, are on deck to receive more than $100 million apiece under the program.
Tiny entities are poised to also receive grants, such as the tribal government for Atka in the Aleutian Islands, set for a $4.9 million grant to deliver wireless service to 432 homes and businesses.
Christine O’Connor — head of the Alaska Telecom Association, which represents many telecommunications providers — said internet service has improved a lot in Alaska.
Two other federal programs, ReConnect and Tribal Broadband Connectivity Program, have together injected about $1 billion into the state in recent years, she said.
Those were also supported with funding from the infrastructure act.
O’Connor said this latest funding will help complete the build-out. It represents the largest federal investment at one time for improving digital connectivity in Alaska, she said.
Dozens of communities in the state still have extremely limited internet service, she said.
This will change that, allowing many families for the first time to do things like stream video-conference calls with multiple people, download movies or better promote their businesses on social media.
“If you’ve got really slow or no internet, and then all of a sudden you have a 100-megabit minimum speed, that goes from being barely able to function in the digital landscape of our world to having complete access,” she said.
“So it’s night and day when you think of everything we do online these days,” she said.
SpaceX among the winners
Space Exploration Technologies, the owner of Starlink, is set to receive $23.6 million to deliver service to more than 15,000 homes and businesses across the state.
The win for SpaceX came after the Trump administration revised rules to create what it described as a technology neutral program that gave satellite-based providers a better chance of winning a grants over fiber, considered the gold standard for internet service.
O’Connor said that even without that revision, satellite-based internet would have been part of the grant-supported programs in Alaska, given the state’s many far-flung communities.
“It’s not cost effective or even possible to reach everyone without using some satellite capacity,” she said.
U.S. Commerce Assistant Secretary Arielle Roth recently approved the state’s $629 million in proposed awards, the state said in a prepared statement.
The awards still must be approved by National Institute of Standards and Technology, a federal agency, O’Connor said. But that’s expected to be a routine review, she said.
After that, the state will have six months to finalize the contracts, which then will start the clock on a four-year period for providers to complete the projects, she said.
In total, Alaska has been allocated $1 billion under the program.
The federal government has not yet said exactly how the remainder of the state’s allocation can be spent, O’Connor said. It will also support broadband access.
Alaska Republican Sens. Dan Sullivan and Lisa Murkowski praised the approval of the state’s program, in a prepared statement. They had joined the late Republican Rep. Don Young in voting for the infrastructure act in 2021.
“These funds will go a long way toward the goal of connecting every Alaskan” and unlock telehealth, education and business opportunities, Sullivan said.
“Importantly, it will better allow Alaskans to connect with one another,” he said.
GCI will expand rural network
GCI, Alaska’s largest telecommunications company, is set to receive three grants, said Megan Webb, a spokesperson.
She said federal approval of the state’s proposal is a “major milestone for Alaska.”
It comes after years of planning by telecommunications companies, she said.
The largest grant to GCI, at $115 million, will help expand the company’s rural Airraq network, adding 16 villages in Southwest Alaska, Webb said.
The plan involves hybrid services using fiber and microwave, to improve slow internet speeds in those communities, she said.
The locations include Mountain Village, Chefornak, St. Mary’s, Mekoryuk, Kipnuk, Goodnews Bay and Togiak, she said.
The company also won two additional grants, totaling almost $6 million, to improve service on the fringes of Anchorage and Eagle River.
That will be useful for first responders in remote areas, cellphone users and households, she said.
“It will improve access to broadband and support improved mobile connectivity in Ship Creek, Bear Valley, Rabbit Creek and the south fork of Eagle River,” she said.
ACS adding thousands of homes
Alaska Communications is set to receive three grants totaling more than $123 million.
The company plans to deliver fiber and advanced wireless infrastructure to over 9,000 homes and businesses. It also plans to invest $26.7 million of its own capital to extend broadband to an additional 12,000 locations, said Heather Cavanaugh, a spokesperson.
The expansion will deliver speeds of up to a gigabyte in Anchorage, Bird Creek and Indian; along with communities on the Kenai Peninsula, such as Hope, and Kodiak Island, Cavanaugh said. Fairbanks, Manley Hot Springs, Salcha and Delta Junction areas will also see the improved service.
“This investment will make a real difference for families, students, healthcare providers and entrepreneurs who rely on strong connectivity to thrive,” said Paul Fenaroli, president of Alaska Communications, in a prepared statement.
Quintillion has been selected for two projects totaling $48 million, to extend its Arctic fiber network in the Lower Yukon region and on St. Lawrence Island.
“In the Lower Yukon region, Quintillion will extend connections from its Nome-to-Homer Express fiber backbone and build local fiber networks within each community,” said Michael “Mac” McHale, president of the company.
“Some locations will connect to the backbone through existing microwave links, while others will connect directly via fiber,” he said in a prepared statement.
“On St. Lawrence Island, the project will deploy fiber-to-the-home networks supported by satellite backhaul due to the island’s remote location,” he said.
SpitwSpots, launched about 20 years ago to provide hotspot service on the Homer spit, is set to receive $16.7 million. It will also invest some of its own capital to support the project.
The company plans to provide fixed wireless service in the Matanuska Valley, Kenai and Kodiak areas, state records show.
SpitwSpots, whose programs include discounted or free service for low-income households, has recently expanded into the Anchorage market, said Aaron Larson, the company’s founder.
He said there are over 2,000 unserved houses and buildings in Anchorage.
“You’d be surprised,” he said. “There’s a lot of places that don’t have any access to internet, or only have access to DSL,” he said, referring to old, slow digital subscriber lines.
Two US soldiers were wounded by a brown bear during a training exercise in Alaska on Thursday, the US Army stated.
Anchorage Daily News reported that the soldiers were from the 11th Airborne Division, and that the exercise had been a “land navigation training event” near Joint Base Elmendorf-Richardson.
State wildlife officials said that the bear attack seemed to be a defensive one, from a bear which had recently emerged from its den. Staff members from the Alaska Department of Fish and Game collected evidence at the scene in an attempt to learn more about the bear, such as its species and gender.
“The incident is currently under investigation, and we are working closely with installation authorities and local wildlife officials to gather all relevant information and ensure the safety of all personnel in the area,” the 11th Airborne Division said in a statement, reported ABC News.
ABC News also cited an 11th Airborne Division spokesperson, Lt.-Col. Jo Nederhoed, who said that the two soldiers had been seriously wounded, but were receiving care at a hospital in Anchorage, and had shown improvement by Saturday morning.
“We hope both individuals have a full and quick recovery, and our thoughts are with them during this time,” Fish and Game Regional Supervisor Cyndi Wardlow said in a statement reported by Anchorage Daily News. “In this case, having bear spray with them in the field may have saved their lives.”
Both of the soldiers reportedly had and used bear spray during the attack.
The bear’s condition and whereabouts are currently unknown.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
ANCHORAGE, Alaska (KTUU) – The reopening of the Strait of Hormuz has led to a decrease in oil prices nationally, but Alaska’s senior senator said the state faces a different situation that could threaten rural communities.
“If you can’t produce power because you don’t have the diesel or you just can’t pay the prices, your little communities can collapse,” Sen. Lisa Murkowski, R-Alaska, said at a Friday press conference at the Arctic Encounter Summit in Anchorage.
The price of oil has been a double-edged sword for Alaska. On one hand, the increased price of North Slope oil brings more revenue to the state, but consumer prices can also rise.
North Slope oil prices were $106.36 a barrel on Thursday.
“This is a very precarious time,” Murkowski said. “Our state has enjoyed a bounty because we have benefited from the higher prices of oil that goes into our treasury, but it’s the Alaskans in … the off-road communities that are threatened to be hit most hard.”
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