General Communication Inc. (GCI) (NASDAQ: GNCMA) is a telecommunications corporation operating in Alaska. Through its own facilities and agreements with other providers, GCI provides cable television service, Internet access, and wireline and cellular telephone service.
General Communication, Inc. (GCI), incorporated in 1979, is primarily a holding company and together with its direct and indirect subsidiaries, is a diversified communications provider in Alaska. The Company provides facilities-based local and long distance voice services, cable television, data and Internet access to residential and business customers across the state under its GCI brand. In addition, it also provides wireless telephone services over its own facilities under the GCI, Alaska DigiTel and Alaska Wireless brand names. The Company operates in five business segments: Consumer, Network Access, Commercial, Managed Broadband and Regulated Operations services.
Consumer Segment
The Company’s Consumer segment offers a range of voice, video, data and wireless services and products to residential customers. Its basic cable service consists of digital basic service with access to between 13 and 21 channels of programming and an expanded digital basic service with access to between 40 and 102 additional channels of programming. These services generally consist of programming provided by national and local broadcast networks, national and regional cable networks, and governmental and public access programming. The Company’s high definition television (HDTV), service provides its digital subscribers with improved, high-resolution picture, improved audio and a wide-screen, theater-like display. The HDTV service offers a selection of high-definition programming with access of up to 82 high-definition channels including broadcast networks, national cable networks and national sports networks.
The Company’s video on demand service permits its cable subscribers to order at their convenience, individual feature motion pictures and special event programs, on an unedited, commercial-free basis. The pay-per-view service permits the cable subscribers to order, for a separate fee, scheduled individual feature motion pictures and special event programs, such as professional boxing, professional wrestling and concerts, on an unedited, commercial-free basis. It also sells a range of handsets and personal computer wireless data cards manufactured by the suppliers for use with its wireless services. The Company also sell accessories, such as carrying cases, hands-free devices, batteries, battery chargers and other items. It also provides contract subscribers substantial equipment subsidies to initiate, continue or upgrade service.
The Company competes with AT&T Alascom, Inc., ACS, the ILEC, MTA, The DirecTV Group, Inc., EchoStar Communications Corporation, AT&T Mobility and Alaska Communications Systems Group.
Network Access Segment
The Company's Network Access segment offers wholesale voice, data, and wireless services and products to other common carrier customers. It provides network transport, billing services and access to its network to other common carriers. The Company is engaged in the transmission of interstate and intrastate-switched message telephone service communications service. The Company terminate northbound message telephone service traffic for several resellers who do not have facilities of their own in Alaska. It also provides origination of southbound calling card, toll-free services, and toll services for interexchange carriers. Services are generally provided pursuant to contracts.
The Company competes with AT&T Alascom and ACS.
Commercial Segment
The Company’s Commercial segment offers a range of voice, video, data and wireless services and products to small businesses, local, national and global businesses, governmental entities, and public and private educational institutions. The Company is engaged in the transmission of interstate and intrastate-switched message telephone service between the major communities in Alaska, and the remaining United States and foreign countries. Its message toll services include intrastate, interstate and international direct dial, toll-free services, calling card, operator and enhanced conference calling services. Small business subscribers generally may cancel long-distance service at any time.
The Company offers full featured local access service to its Commercial segment customers using its own fiber and coax facilities and collocated remote facilities. It sells advertising in the yellow pages directories to Commercial segment customers, distribute white and yellow pages directories or compact disc directories to customers in certain markets it serve, and offer an on-line directory. The Company offers three yellow pages directories with each directory covering multiple locations and including custom features for each area. It also designs, sells, installs, services and operates, on behalf of certain customers, communications and computer networking equipment and provide field/depot, third party, technical support, communications consulting and outsourcing services.
Managed Broadband Segment
The Company’s Managed Broadband segment offers Internet access and related services to rural schools and health organizations. SchoolAccess is a suite of services designed to advance the educational opportunities of students in underserved regions of the country. The SchoolAccess division provides Internet and distance learning services designed exclusively for the school environment. Its network, Internet and software application services provided through its Managed Broadband segment’s Medical Services division are branded as ConnectMD. ConnectMD services are provided under contract to medical businesses in Alaska, Washington and Montana.
The Company offers a managed video conferencing product for use in distance learning, telemedicine and group communication and collaboration environments. The product is designed to offer customers enhanced communication services that support video, audio and data presentation. The product benefits customers by reducing travel costs, improving course equity in education and increasing the health services available to patients. The product bundles the data products, video conferencing services and optional rental of video conferencing endpoint equipment. Its video conferencing services include multipoint conferencing, integrated services digital network gateway and transcoding services, online scheduling and conference control, and videoconference recording, archiving and streaming.
Regulated Operations Segment
The Company offers voice and data services and products to commercial and residential customers in 60 rural communities in the Bethel, Alaska area. It offers wireline and wireless communications services to the residential and commercial customers.
GCI provides access to the Internet via multiple means. As of August 2010, GCI provides cable modem services in major cities in Alaska with download speeds up to 22 megabits per second. In the rural cities of Nome, Cordova, Bethel, and Barrow, GCI provides high-speed cable modem services but uses a satellite for the backhaul connection, as the cost to lay cable to these remote areas is prohibitively expensive. In some rural communities where GCI does not have a cable TV infrastructure, it provides lower-bandwidth (56-512 kbit/s) wireless Internet access over a satellite backhaul.
Through its own facilities and agreements with other providers, primarily Alaska Communications Systems, GCI provides data network and Internet connections via DSL, PRI leased lines (such as a T1), and other high-bandwidth business-class products. These services are aimed at the business market. The state government is a major customer of GCI, using GCI's infrastructure to provide the backbone for the state's wide area network.
GCI maintains local access numbers throughout the state for analog dial-up service.
GCI also owns Alaska United fiber optic cable system, which connects Anchorage and Fairbanks with Internet points of presence in Seattle and Portland. GCI leases capacity on their system to other Internet providers in Alaska, including Clearwire wireless broadband.
OVERALL
Beta: 1.02
Market Cap (Mil.): $506.23
Shares Outstanding (Mil.): 47.05
Annual Dividend: --
Yield (%): --
FINANCIALS
GNCMA.O Industry Sector
P/E (TTM): 63.61 16.68 15.34
EPS (TTM): 173.18 -- --
ROI: 0.70 6.16 7.54
ROE: 3.84 8.81 10.52
Through an agreement with Dobson Communications Systems, which provided TDMA and GSM cellular service under the Cellular One brand, GCI formerly sold GSM cellular service under its own name while providing Dobson with the back-end network infrastructure. AT&T's purchase of Dobson, however, resulted in an agreement on December 3, 2007 that released Dobson, now under the AT&T Wireless brand, from its contract to use GCI for its back-end network on July 1, 2008; AT&T Wireless now uses existing AT&T Alascom networks. GCI will continue to contract with AT&T Wireless for the use and resale of its products and services through June 30, 2012 but will also invest $100 million in its own network. It also plans to spend approximately $10 million to complete its acquisition of the remaining 20% of Alaska Digitel, a competing CDMA-based cellular carrier.
GCI offers local telephone service in many Alaskan markets as well as intrastate and interstate long-distance. As the competitive local exchange carrier, GCI primarily contracts with the incumbent local exchange carrier, Alaska Communications Systems, to provide the local loop from GCI's switches to customers. (This practice is known as UNE-loop.)
GCI is currently deploying digital cable telephony based on PacketCable technology in Anchorage as a replacement for the analog copper last mile and plans to expand the service to Fairbanks and Juneau . In GCI's implementation, the connection between the GCI head end and the subscriber's EMTA uses IP packets but is interconnected with GCI's more traditional circuit-switched infrastructure and backbone.
GCI also provides legacy as well as Cisco VoIP telephony for many customers, including the state government.
Name Age Since Current Position
Brett, Stephen 70 2005 Independent Chairman of the Board
Duncan, Ronald 58 1989 President, Chief Executive Officer, Director
Lowber, John 61 1989 Chief Financial Officer, Senior Vice President, Treasurer, Secretary
Hughes, G. Wilson 65 1991 Executive Vice President, General Manager
Landes, Paul 52 2010 Senior Vice President, General Manager - Consumer Services
Behnke, William 53 2001 Senior Vice President
Dowling, Richard 67 1990 Senior Vice President - Corporate Development
Chapados, Gregory 53 2006 Senior Vice President - Federal Affairs and Business Development
Pidgeon, Tina 42 2010 Senior Vice President
Cary, Martin 46 2004 Vice President, General Manager - Managed Broadband Services
Pearce, Gregory 47 2010 Vice President, General Manager - Business Services
Glasgow, William 52 1996 Independent Director
Mooney, Stephen 51 1999 Independent Director
Schneider, James 58 1994 Independent Director
Fisher, Scott 44 2005 Independent Director
Edgerton, Jerry 68 2004 Independent Director
Kroloff, Mark 53 2009 Independent Director
COMPANY ADDRESS
General Communication Inc
2550 Denali Street
Suite 1000
General Communication, Inc. (GCI), incorporated in 1979, is primarily a holding company and together with its direct and indirect subsidiaries, is a diversified communications provider in Alaska. The Company provides facilities-based local and long distance voice services, cable television, data and Internet access to residential and business customers across the state under its GCI brand. In addition, it also provides wireless telephone services over its own facilities under the GCI, Alaska DigiTel and Alaska Wireless brand names. The Company operates in five business segments: Consumer, Network Access, Commercial, Managed Broadband and Regulated Operations services.
Consumer Segment
The Company’s Consumer segment offers a range of voice, video, data and wireless services and products to residential customers. Its basic cable service consists of digital basic service with access to between 13 and 21 channels of programming and an expanded digital basic service with access to between 40 and 102 additional channels of programming. These services generally consist of programming provided by national and local broadcast networks, national and regional cable networks, and governmental and public access programming. The Company’s high definition television (HDTV), service provides its digital subscribers with improved, high-resolution picture, improved audio and a wide-screen, theater-like display. The HDTV service offers a selection of high-definition programming with access of up to 82 high-definition channels including broadcast networks, national cable networks and national sports networks.
The Company’s video on demand service permits its cable subscribers to order at their convenience, individual feature motion pictures and special event programs, on an unedited, commercial-free basis. The pay-per-view service permits the cable subscribers to order, for a separate fee, scheduled individual feature motion pictures and special event programs, such as professional boxing, professional wrestling and concerts, on an unedited, commercial-free basis. It also sells a range of handsets and personal computer wireless data cards manufactured by the suppliers for use with its wireless services. The Company also sell accessories, such as carrying cases, hands-free devices, batteries, battery chargers and other items. It also provides contract subscribers substantial equipment subsidies to initiate, continue or upgrade service.
The Company competes with AT&T Alascom, Inc., ACS, the ILEC, MTA, The DirecTV Group, Inc., EchoStar Communications Corporation, AT&T Mobility and Alaska Communications Systems Group.
Network Access Segment
The Company's Network Access segment offers wholesale voice, data, and wireless services and products to other common carrier customers. It provides network transport, billing services and access to its network to other common carriers. The Company is engaged in the transmission of interstate and intrastate-switched message telephone service communications service. The Company terminate northbound message telephone service traffic for several resellers who do not have facilities of their own in Alaska. It also provides origination of southbound calling card, toll-free services, and toll services for interexchange carriers. Services are generally provided pursuant to contracts.
The Company competes with AT&T Alascom and ACS.
Commercial Segment
The Company’s Commercial segment offers a range of voice, video, data and wireless services and products to small businesses, local, national and global businesses, governmental entities, and public and private educational institutions. The Company is engaged in the transmission of interstate and intrastate-switched message telephone service between the major communities in Alaska, and the remaining United States and foreign countries. Its message toll services include intrastate, interstate and international direct dial, toll-free services, calling card, operator and enhanced conference calling services. Small business subscribers generally may cancel long-distance service at any time.
The Company offers full featured local access service to its Commercial segment customers using its own fiber and coax facilities and collocated remote facilities. It sells advertising in the yellow pages directories to Commercial segment customers, distribute white and yellow pages directories or compact disc directories to customers in certain markets it serve, and offer an on-line directory. The Company offers three yellow pages directories with each directory covering multiple locations and including custom features for each area. It also designs, sells, installs, services and operates, on behalf of certain customers, communications and computer networking equipment and provide field/depot, third party, technical support, communications consulting and outsourcing services.
Managed Broadband Segment
The Company’s Managed Broadband segment offers Internet access and related services to rural schools and health organizations. SchoolAccess is a suite of services designed to advance the educational opportunities of students in underserved regions of the country. The SchoolAccess division provides Internet and distance learning services designed exclusively for the school environment. Its network, Internet and software application services provided through its Managed Broadband segment’s Medical Services division are branded as ConnectMD. ConnectMD services are provided under contract to medical businesses in Alaska, Washington and Montana.
The Company offers a managed video conferencing product for use in distance learning, telemedicine and group communication and collaboration environments. The product is designed to offer customers enhanced communication services that support video, audio and data presentation. The product benefits customers by reducing travel costs, improving course equity in education and increasing the health services available to patients. The product bundles the data products, video conferencing services and optional rental of video conferencing endpoint equipment. Its video conferencing services include multipoint conferencing, integrated services digital network gateway and transcoding services, online scheduling and conference control, and videoconference recording, archiving and streaming.
Regulated Operations Segment
The Company offers voice and data services and products to commercial and residential customers in 60 rural communities in the Bethel, Alaska area. It offers wireline and wireless communications services to the residential and commercial customers.
GCI provides access to the Internet via multiple means. As of August 2010, GCI provides cable modem services in major cities in Alaska with download speeds up to 22 megabits per second. In the rural cities of Nome, Cordova, Bethel, and Barrow, GCI provides high-speed cable modem services but uses a satellite for the backhaul connection, as the cost to lay cable to these remote areas is prohibitively expensive. In some rural communities where GCI does not have a cable TV infrastructure, it provides lower-bandwidth (56-512 kbit/s) wireless Internet access over a satellite backhaul.
Through its own facilities and agreements with other providers, primarily Alaska Communications Systems, GCI provides data network and Internet connections via DSL, PRI leased lines (such as a T1), and other high-bandwidth business-class products. These services are aimed at the business market. The state government is a major customer of GCI, using GCI's infrastructure to provide the backbone for the state's wide area network.
GCI maintains local access numbers throughout the state for analog dial-up service.
GCI also owns Alaska United fiber optic cable system, which connects Anchorage and Fairbanks with Internet points of presence in Seattle and Portland. GCI leases capacity on their system to other Internet providers in Alaska, including Clearwire wireless broadband.
OVERALL
Beta: 1.02
Market Cap (Mil.): $506.23
Shares Outstanding (Mil.): 47.05
Annual Dividend: --
Yield (%): --
FINANCIALS
GNCMA.O Industry Sector
P/E (TTM): 63.61 16.68 15.34
EPS (TTM): 173.18 -- --
ROI: 0.70 6.16 7.54
ROE: 3.84 8.81 10.52
Through an agreement with Dobson Communications Systems, which provided TDMA and GSM cellular service under the Cellular One brand, GCI formerly sold GSM cellular service under its own name while providing Dobson with the back-end network infrastructure. AT&T's purchase of Dobson, however, resulted in an agreement on December 3, 2007 that released Dobson, now under the AT&T Wireless brand, from its contract to use GCI for its back-end network on July 1, 2008; AT&T Wireless now uses existing AT&T Alascom networks. GCI will continue to contract with AT&T Wireless for the use and resale of its products and services through June 30, 2012 but will also invest $100 million in its own network. It also plans to spend approximately $10 million to complete its acquisition of the remaining 20% of Alaska Digitel, a competing CDMA-based cellular carrier.
GCI offers local telephone service in many Alaskan markets as well as intrastate and interstate long-distance. As the competitive local exchange carrier, GCI primarily contracts with the incumbent local exchange carrier, Alaska Communications Systems, to provide the local loop from GCI's switches to customers. (This practice is known as UNE-loop.)
GCI is currently deploying digital cable telephony based on PacketCable technology in Anchorage as a replacement for the analog copper last mile and plans to expand the service to Fairbanks and Juneau . In GCI's implementation, the connection between the GCI head end and the subscriber's EMTA uses IP packets but is interconnected with GCI's more traditional circuit-switched infrastructure and backbone.
GCI also provides legacy as well as Cisco VoIP telephony for many customers, including the state government.
Name Age Since Current Position
Brett, Stephen 70 2005 Independent Chairman of the Board
Duncan, Ronald 58 1989 President, Chief Executive Officer, Director
Lowber, John 61 1989 Chief Financial Officer, Senior Vice President, Treasurer, Secretary
Hughes, G. Wilson 65 1991 Executive Vice President, General Manager
Landes, Paul 52 2010 Senior Vice President, General Manager - Consumer Services
Behnke, William 53 2001 Senior Vice President
Dowling, Richard 67 1990 Senior Vice President - Corporate Development
Chapados, Gregory 53 2006 Senior Vice President - Federal Affairs and Business Development
Pidgeon, Tina 42 2010 Senior Vice President
Cary, Martin 46 2004 Vice President, General Manager - Managed Broadband Services
Pearce, Gregory 47 2010 Vice President, General Manager - Business Services
Glasgow, William 52 1996 Independent Director
Mooney, Stephen 51 1999 Independent Director
Schneider, James 58 1994 Independent Director
Fisher, Scott 44 2005 Independent Director
Edgerton, Jerry 68 2004 Independent Director
Kroloff, Mark 53 2009 Independent Director
COMPANY ADDRESS
General Communication Inc
2550 Denali Street
Suite 1000
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