Alaska Telephone Company Awarded $33m USDA ReConnect Grant to Expand Fiber Optic Connectivity in Klukwan, Haines, and Skagway Areas

Alaska Telephone Company (ATC), a subsidiary of Alaska Power & Telephone Company (AP&T), has been selected by the US Department of Agriculture (USDA) to receive a $33,017,636 grant award
from USDA Rural Utility Service’s ReConnect grant program to expand fiber optic connectivity in rural southeast Alaska. Alaska Telephone Company will invest $11,005,879 in matching funds. The
“Klukwan-Skagway Fiber” project will develop fiber optic networks capable of 100 Mbps symmetrical service and higher for in the Alaska Native community of Klukwan, rural areas near Haines, and
underserved areas of Skagway. This joint investment by ATC and USDA will bring new, highly affordable, technology-driven opportunities to families and businesses throughout the region.

AP&T estimates that initial construction may begin in 2023, depending on the timing of permitting and environmental approvals. Construction will be a multi-year process, with completion
projected for 2028. The project utilizes existing right-of-way and previously disturbed areas, minimizing its environmental footprint and impacts.

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