Ringing in the Best Deals in Telecommunications.

• Author: BARBOUR, TRACY
• Position: Statistical Data Included

Telephone companies now offer cellular, Internet, cable and other services in addition to their local and long-distance offerings.

Telecommunications is a rapidly expanding industry in Alaska. Dozens of local and long-distance carriers supply services to residential and business customers around the state, according to the Regulatory Commission of Alaska, which controls local telephone and in-state long-distance telephone service in Alaska.

Agnes Pitts, spokeswomen for the RCA, says the telecommunications sector is highly competitive in Alaska and increased competition has helped lower service rates around the state. "I've lived in Anchorage for about 30 years, and I can remember a time when I was paying 25 cents a minute per in-state call," she said. "Now most companies charge 15 cents to 17 cents for in-state calls."

The monthly fee for local residential service with Alaska Communications Systems Group (better known as ACS), for example, ranges from $9.40 a month in Anchorage to $12.50 in Fairbanks.

Pitts attributes part of the growth in competition to the Telecommunications Act of 1996. The broad goal of the act-the first major overhaul of telecommunications law in almost 62 years-is to allow anyone to enter any communications business and to let any communications business compete in any market.

That law has resulted in a number of trends within the industry, Pitts said. For one, telephone companies now have a more diverse offering of products and services, she said. Many provide a combination of services, including local, long distance, cellular, Internet and cable services. "I think it's the idea of offering the convenience of having everything in one location," Pitts said.

General Communications Inc. agrees. GCI, which made its mark as a long-distance carrier, offers local, wireless, Internet and cable services. "It's one-stop shopping," said spokesman David Morris. "We've combined a number of these technologies together and we now can offer them to customers through a fairly seamless process."

Bundling is a trend taking place in telecommunications, according to Pitts. This is a key strategy for GCI, which gives away "free" basic Internet when consumers sign on for a $5.99-per-month long-distance plan. The plan has been an unqualified success for the company, Morris said.

Phone companies also are catering more to customers' individual needs. This approach is fundamental to AT&T Alascom's marketing strategy. The company tries to avoid one-size-fits-all packages...