OKLAHOMA CITY, July 27, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) and GCI (Nasdaq:GNCMA) have entered into a distribution agreement under which GCI will market Dobson wireless services in Alaska.
The 10-year agreement will allow GCI to market wireless services to its current telephone, Internet and cable television customer base throughout the state, by selling wireless as part of a bundled telecommunications package. The agreement also allows GCI to sell to standalone wireless customers. GCI will market wireless services under its own brand name.
Dobson is the largest provider of wireless services in Alaska. The Company expanded its markets statewide in June 2003 with the acquisition of the Anchorage Metropolitan Service Area and Alaska Rural Service Area 2. Dobson previously provided wireless services in Fairbanks and Juneau, and now serves markets that include approximately 92 percent of the state's population.
GCI is the largest telecommunication company in Alaska. A pioneer in bundled services, GCI provides local, wireless, and long distance telephone, cable television, Internet and data communications services throughout Alaska.
Following the initial 10-year term, the agreement may be renewed in successive three-year terms. Financial terms of the distribution agreement were not disclosed.
Under the agreement, GCI will be responsible for customer credit approval, billing and customer service procedures for its wireless customers. GCI is currently a distributor of Dobson services and anticipates expanding its wireless product offerings in the next few months.
"We're very pleased that GCI will be selling our product through their distribution channels statewide," said Doug Stephens, chief operating officer for Dobson. "The recent upgrade of our wireless network clearly demonstrates Dobson's commitment to offering the most advanced voice and data technologies available. We expect that this agreement will help us expand our total customer base in Alaska more quickly, and that expansion will provide us with additional opportunities to introduce new wireless technologies and services to our customers."
"This is an excellent opportunity for GCI and Dobson to leverage the strengths of one another's networks and brand names," said William Behnke, GCI senior vice president of strategic initiatives. "This agreement will enable us to develop new integrated products that combine wireline and wireless technologies, and to provide customers with unprecedented value and service."
In addition, GCI will now be able to respond immediately in the market to the demand for enhanced wireless services, especially as part of a total package with telephone, Internet and cable television.
As of March 31, 2004, GCI served a total of 108,600 local telephone lines, an estimated 23 percent share of the total access line market in Alaska; approximately 100,600 Internet customers, of whom 51,700 use GCI cable modem service; and 133,981 cable television subscribers.
In a separate agreement, Dobson agreed to lease wireless spectrum throughout Alaska from GCI. The leased spectrum is in the 1900 MHz spectrum band.
GCI is headquartered in Anchorage. For additional information on GCI, please visit its web site at www.gci.com.
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.