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GCI first out in race to upgrade to 4G networks

GCI, the second-largest wireless provider in Alaska behind AT&T, plans to turn on its upgraded Anchorage network in the first week of August. The company is spending $34 million this year for its 4G upgrade in Anchorage and to bring 3G coverage to an additional 20 or so communities in the state.

Anchorage-based Alaska Communication Systems Inc., which originally had $12 million budgeted this year to move toward 4G speeds with upgraded backhaul infrastructure, announced plans June 22 to spend another $20 million to build out the first 4G LTE network in the state.

Backhaul refers to the routing of voice and data traffic, which in a 4G network means the use of "packet switching," a common technology used by computer networks to bundle and move data more efficiently. A 3G network uses a combination of packet switching and "circuit switching," which traces its name back to the old switchboards formally used to connect telephone calls.

LTE stands for "long term evolution" and refers to the eventual connecting of all electronic devices to enable integration of home, car and smartphone platforms. While it is possible to get to speeds faster than 3G by changing antennas and ground equipment, going to an LTE network requires fiber optic lines running to the towers.

ACS is now working on extending its existing fiber or adding new fiber to cell sites.

LTE also uses more spectrum, and according to ACS, its available spectrum and fiber optic backhaul will enable data speeds up to 10 times faster than current networks and up to twice as fast as other 4G networks such as GCI's upgraded HSPA+(High Speed Packet Access), which have download speeds of 20 megabits per second.

ACS hasn't announced specific timing for rolling out the network, but the additional $20 million in build-out for ACS is front-loaded with getting fiber optic lines to all its towers, and is being funded with cash from operations and $10 million in proceeds from a $120 million debt offering in May.

Last April, Verizon Wireless confirmed it will eventually enter the state market with an LTE network after it purchased 700 megahertz C-block spectrum for Alaska last November, the first step toward an eventual offering of 4G service.

AT&T already had plans to upgrade its backhaul infrastructure in two-thirds of its markets to enable faster 4G speeds by the end of 2011, and for upgrading 80 percent of its network to 4G LTE by the end of 2013.

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