From: floyd@hayes.ims.alaska.edu (Floyd Davidson)
Newsgroups: comp.dcom.telecom
Subject: Re: The Alascom Story
Date: 8 Apr 92 13:01:20 GMT
Article-I.D.: eecs.telecom12.305.1
Organization: University of Alaska Institute of Marine Science
X-Submissions-To: telecom@eecs.nwu.edu
X-Administrivia-To: telecom-request@eecs.nwu.edu
X-Telecom-Digest: Volume 12, Issue 305, Message 1 of 7

[I'll preface this with the disclaimer that I am a employee of
Alascom, Inc.  They pay me to twist knobs, not to voice opinions on
politics or business.  The knobs are theirs, these opinions are mine.]

In article <92.04.08.1@eecs.nwu.edu>:

My goodness, that story is enough to make us all blush!  But I do have
a few comments and clarifications:

> from Alascom, the original "interstate" and "international" common
> carrier for Alaska, that in addition to a pretty illustrious history,
> has today become one of the world's most called-upon "fast response"
> providers of transportable satellite stations for public
> communications, even down to being the real communications earth
> station provider during Desert Storm, operating quietly behind the
> scenes while AT&T and MCI beat their breasts about "providing the
> troops with phones from Saudi Arabia":

AT&T definitely has some bragging rights there too!  They own the
network in Saudi Arabia and in Kuwait.  When they needed "fast
response" they knew where to buy it, and so did the Department of
Defense.  But while Alascom owns the transportable earth stations and
the technicians who maintain them, AT&T manages the network.  They
deserve a large measure of credit for their part too.

I do remember reading a story in some industry rag about another
company that managed to get their first ES in Saudi up and running
within days (two if my memory is right) of hitting the ground.  They
were fairly proud of it!

We do it in two hours on a regular basis.  Anywhere in the world you
wish to pay for ...


>                   THE ALASCOM STORY


> "When Alaska was granted statehood in 1959, Western Electric
> had been operating the strategic White Alice Communications System
> (WACS) for the government.

WACS was built by WECO, but Federal Electric Company (ITT) got the
first three year maintenance and operations contract.  They then lost
out to RCA Service Company, who lost it back to FEC in 1969.  In 1976
RCA leased WACS on a terminal contract to purchase and replace the
entire system.

>        "In 1969, Congress passed the Alaska Communications Disposal
> Act.  Among interested bidders to purchase the Alaska Communications
> System were General Telephone, Continental Telephone and RCA Global
> Communications.  RCA was the successful bidder at a price of $28.5
> million in cash and a pledge to immediately invest an additional $30
> million for badly needed improvements to the then seriously overtaxed
> and outdated ACS.

>        "RCA renamed its Alaska operating unit Alascom, ...

RCA renamed it "RCA Alaska Communications, Inc.", not Alascom.
Alascom came years later when RCA sold it to Pacific Power & Light.

> purchased the Bartlett Earth Station, then the only one in Alaska and
> Alaska's sole satellite link with the outside world.  Shortly
> thereafter, Alascom contructed its own first satellite station at Lena
> Point, near Juneau, bringing Alaska into the era of modern satellite
> technology.

It would be very nice to say that RCA had all the good sense available
and was responsible for what happened.  It ain't so.  A few far
sighted people at the University of Alaska and in state government
gave them a push that couldn't be avoided (they tried).  RCA in fact
tried to install a very cheap microwave and VHF network ... and it
failed.

>        "In the late 1970's, the federal government was beginning to
> look at reshaping the domestic telecommunications industry to foster
> competition.  The giant RCA Global Communications, which also operated
> worldwide communications of many sorts, was ordered by the FCC to
> divest itself of domestic satellite communications -- of which RCA
> Alascom was a foremost part.

I would not characterize it as the "foremost part" ...

>  RCA American Communications (RCA
> Americom) was formed as a totally independent corporation and given
> the responsibility for handling all domestic satellite business of
> RCA.

>        "In June, 1979, RCA Alascom was purchased by Pacific Power and
> Light Company (now PacifiCorp) of Portland, Oregon.  The purchase
> price was $200 million cash and taking over $90 million of Alascom's
> long term debt.

This would lead one to believe that the sale was for the reasons
mentioned.  Not the case.  In fact RCA Alaska Communications was the
one and only regulated utility that RCA owned.  The prime reason it
was sold was because RCA had a very difficult time dealing with the
FCC and the Alaska Public Utilities Commission.  A *very* difficult
time.

That is just my humble (or not) opinion of course ... but it is true.

The purchase by PP&L was the occasion for the name Alascom, Inc.  I
really don't remember how long it was after that before Pacific
Telecom was formed as the owner of Alascom, and PP&L became Pacific
Corp (which of course is the parent of Pacific Telecom).

It is also interesting that PP&L immediately put one Charles Robinson
in overall charge of Alascom ... Chuck was an old time WACS employee
 ... who now runs the parent company itself, and still knows most of
the Alascom employees by first names.  (The rumor was that he was
given Alascom with the basic instructions that he would sink or swim
with it, and was given a completely free hand to run it as he wished.
He seems to swim very well.)

>        "On May 29, 1991, Alascom launched its second satellite --
> Aurora II -- as a replacement for the aging Aurora I which was almost
> out of station-keeping fuel after nine years of faithful service.

Wellllll ...  actually Aurora I crapped out before the scheduled launch
of Aurora II.  We ended up moving to a backup bird until Aurora II
went up.  The transition scheduled to take all summer was done in a
matter of a couple weeks when the loss of Aurora I became obvious.
Busy times it was!  (But that is a good demonstration of why we can
hire out to the likes of AT&T as a do anything anywhere and do it fast
outfit.  Just the normal environment here...)

> THE FUTURE:

>        "The years ahead are full of promise and excitement.  As

> serving its state and its people -- and now increasingly expanding
> that scope to the world, wherever and whenever needed.

Well, yes, but ...  not as Alascom, Inc.  The death warrant has not
been signed and delivered, but it is sitting on the judge's bench.
Alascom and AT&T have an agreement to sell the inter-state business
between Alaska and the lower 49 states to AT&T.  On or about the day
that sale is approved by the FCC and the APUC, Alascom will cease to
exist.  It will be "swallowed" by PTI Comm, the local exchange carrier
in Alaska owned by Pacific Telecom.  In fact Alascom is going to
swallow PTI Comm, but the name will be PTI Comm when it is done.


Floyd