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June 30, 2003
David Morris, (907) 265-5396; dmorris@gci.com
Bruce Broquet, (907) 868-6660; bbroquet@gci.com
FOR IMMEDIATE RELEASE
GCI TO BUILD SECOND
FIBER OPTIC CABLE TO LOWER 48 STATES
$50 Million Project Will Provide Unlimited Backup Facilities
ANCHORAGE, AK -- General Communication, Inc. (GCI) officials today announced the building of a $50 million fiber optic cable connecting
Seward, Alaska and Warrenton, Oregon. The 1,544-statute mile cable has a total design capacity of 640 Gigabits per second access speed and is planned to be
operational by May 2004. The cable will complement GCI's existing fiber optic cable between Whittier, Alaska and Seattle, Washington. The two cables will
provide physically diverse instant backup to each other in the event of an outage.
"In combination with GCI's Alaska United cable this new fiber optic cable will provide unprecedented reliability for business, education and government
users," said Richard Dowling, GCI senior vice president, corporate development. "The project underscores GCI's commitment to Alaska and our continued
investment in its future."
When the system is completed in 2004, it will deliver a minimum of 258,048 simultaneous clear channel voice or data circuits at transmission speeds of 20
billion bits per second. As demand increases, capacity can be increased to support a minimum of 8,257,536 simultaneous clear channel voice or data circuits
at speeds of 640 billion bits per second.
Fiber optics is the preferred method of carrying voice, video or data communications. It allows for optimization of transmission performance because of
its lack of latency. Its superior information carrying capacity enables the deployment of new, bandwidth hungry applications such as faster Internet,
Broadband ISDN and video conferencing.
A consortium of companies, with members NEC Corporation (NEC), OCC Corporation (OCC) and Global Marine Systems Limited (GMSL) headed by Sumitomo
Corporation of Japan, has been selected to design, engineer, manufacture and install the undersea cable system. The consortium brings together the strengths
of three world-renowned companies. NEC will engineer, manufacture and integrate the system. OCC will produce the undersea cable. GMSL will install the
system in the complex marine environment.
"We are extremely excited about being chosen to build this important infrastructure project, and to be working with GCI. We believe this project will
have an important impact on the future telecommunications needs of Alaska," said Koji Takahashi, executive marketing manager of NEC.
"We are delighted that our consortium has been awarded this contract. The challenges off the Alaska coast have provided a real opportunity for us to
demonstrate the tailor made approach we have to installation," added Murray Eldridge, commercial director, Global Marine.
The new cable will be configured in a SONET ring with the current system, which provides alternative routing and overflow traffic handling capabilities.
A sub-sea survey of the route was completed October of 2002. Manufacturing of the cable, landing stations and equipment will begin immediately and cable
deployment is expected to commence January 2004 with commercial operation by May 30, 2004.
GCI expects to finance the construction of the fiber cable out of its free cash flow with assistance from a Senior Credit Facility provided by a
syndication of financial institutions led by Credit Lyonnais, New York.
Based on revenues, GCI (Nasdaq:GNCMA) is the largest Alaska-based and operated integrated telecommunications provider and provides local, wireless, and
long distance telephone, cable television, Internet and data communication services throughout Alaska. More information about the company can be found at
www.gci.com.
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