Alaska Communications has agreed to sell its wireless subscriber base and its 33% interest in the Alaska Wireless Network (AWN) joint venture (JV) to General Communication Inc (GCI) for USD300 million. Under the terms of the agreement GCI will assume Alaska Communications’ wireless subscriber base of around 109,000 subscribers, and services will be uninterrupted and continue to operate state-wide. The merger, which is subject to certain closing conditions, is expected to conclude in the first quarter of 2015.
Following the transaction, GCI will own 100% of AWN. The JV was formed in July 2013 and combined the wireless network assets of Alaska Communications and GCI. The tie-up was designed to position the two companies to better compete against the US’s national wireless carriers.