# Regardless of Whether, the FCC's Check on Arctic Fiber

> The FCC cleared GCI's Arctic fiber deal partly by citing Starlink, a rival the record can't agree sells wholesale middle mile in Alaska.

Published 2026-10-31 by Alaska AI. 9 slides.
Canonical: https://alaskaaihq.com/archive/2026-10-31/

## The story

regardless of whether

The FCC cleared GCI's Arctic fiber deal citing Starlink

"... Starlink is currently providing wholesale middle mile transport service in Alaska, we find nothing in the record to suggest that it or another LEO could not provide such wholesale service..."

The record disagrees on whether Starlink sells it here today. The FCC approved anyway, with conditions.

GCI is buying control of 1,176 miles of Arctic seabed fiber.

Six landings, Prudhoe Bay to Nome. Three fiber pairs, each designed for 10 Tbps. The Nome to Homer Express, under construction, adds Emmonak, Hooper Bay and Naknek. Enterprise value, $310 million.

"GCI and Quintillion currently are the only providers of middle mile transport for substantial portions of Western and Northern Alaska, respectively."

ACS also said the Universal Service Fund would bear the cost. The FCC denied the petition.

In January 2025, sea ice cut the line near Oliktok Point.

The outage ran seven to nine months, by differing accounts. GCI told the FCC it moved traffic to its microwave system and had to drastically limit speeds.

Under the ice, one line.

Two fiber pairs carry traffic, the companies say. One is held in reserve.

What GCI is actually held to

Contracts in force at closing, honored for the life of the system No inflation increase for three years after closing Then only if Anchorage inflation tops 5 percent, capped at that rate, once a year Contracts over $5,000 a month per circuit or $10,000 total filed with the FCC, 7 years wholesale, 5 other Under seal. The public won't see the prices.

The order never mentions AI. Its eastern landing is Prudhoe Bay.

North Slope Power, a North Slope Borough venture, plans a gas plant near Prudhoe Bay designed, it says, to power colocated AI data centers. Proponents describe 3 GW at first, possibly 10.

Is "regardless of whether" enough of a check on Arctic fiber prices?

## What we verified

- The FCC approved, with conditions, the transfer of control of Quintillion's submarine cable landing license to GCI. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The FCC released the order on October 20th. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The FCC denied the petition to deny filed by Alaska Communications (ACS). [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The Quintillion System connects Prudhoe Bay, Barrow, Wainwright, Point Hope, Kotzebue and Nome. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The Quintillion System is 1,176 miles long. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The Quintillion System has three fiber pairs. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The Quintillion System has six cable landing station sites. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Each Quintillion fiber pair has an initial design capacity of 10 Tbps. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- On April 1st the FCC granted a modification of Quintillion's license for the Nome to Homer Express extension. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The NTHE extension runs from Nome to three new landing points at Emmonak, Hooper Bay and Naknek. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- GCI agreed to acquire Quintillion's parent at a $310 million enterprise value. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- GCI will reimburse up to $50 million of qualifying capital spending on Quintillion's NTHE project. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Additional earnout payments may be owed in 2028, 2029 and 2031 if certain financial metrics are met. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Quintillion Subsea will continue to own all segments of the Quintillion System after the deal. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- ACS argued that "GCI and Quintillion currently are the only providers of middle mile transport for substantial portions of Western and Northern Alaska, respectively.". [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- ACS maintains that the Universal Service Fund will bear the cost of GCI monopoly pricing. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The FCC said competitive concerns are largely mitigated by lower marginal cost, the end of double marginalization and the growing presence of LEO satellite providers, particularly Starlink. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The FCC acknowledged disagreement in the record over whether Starlink is currently providing wholesale middle mile transport service in Alaska. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The FCC found nothing in the record to suggest that Starlink or another LEO provider could not provide wholesale middle mile service, regardless of whether Starlink provides it today. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Starlink began offering service in Alaska in November 2022, according to the FCC. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- During Quintillion's 2025 outage, GCI moved traffic to its microwave system and was forced to drastically limit speeds, according to the applicants. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The applicants described Quintillion's 2025 outage as lasting seven-plus months. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The applicants say the deal will enable an upgrade of the Quintillion-GCI network gateways to 100 Gbps from 10 Gbps. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- As a condition, GCI must honor and extend any Quintillion contract in effect at closing for the life of the system, at the counterparty's choice. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Existing Quintillion wholesale customers may order new services at their rural pricing to Nome to Homer Express locations once those are available. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- GCI may adjust contract prices for inflation only if 12-month inflation exceeded 5 percent on the Anchorage consumer price index for all urban consumers. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Any inflation adjustment can apply no earlier than three years after closing. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- GCI may apply no more than one inflation adjustment per year. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- GCI must give the FCC copies of covered contracts whose monthly recurring charge exceeds $5,000 per circuit. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The disclosure duty also covers contracts whose monthly recurring charge exceeds $10,000 in the aggregate. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The contract disclosure duty lasts seven years after closing for wholesale contracts. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The contract disclosure duty lasts five years for all other contracts. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- All contract documentation goes to the FCC under seal on a confidential basis. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The Quintillion Rural Network is planned to have points of presence in 13 communities. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The order names 10 GCI Overlapping Communities, served or to be served by both GCI and Quintillion. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- Petitions for reconsideration of the order may be filed within thirty days of its release. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- The text of the FCC order does not mention artificial intelligence or data centers. [FCC Office of International Affairs](https://docs.fcc.gov/public/attachments/DA-26-1124A1.txt), primary document, 2026-10-20.
- GCI said in June it would use Starlink's dedicated service with bonded gateways to strengthen network resiliency. [GCI Newsroom](https://news.gci.com/news-releases/gci-strengthens-network-resiliency-across-alaska-with-starlink), primary document, 2026-06-11.
- FEC records show Peter Corsell gave $7,000 to the joint fundraising committee Sullivan Victory on May 1st. [Federal Election Commission](https://api.open.fec.gov/v1/schedules/schedule_a/?contributor_name=Corsell%2C+Peter&two_year_transaction_period=2026&api_key=DEMO_KEY&per_page=20&sort=-contribution_receipt_date), primary document, 2026-05-01.
- FEC records show the two $3,500 entries from Corsell to Alaskans for Dan Sullivan on May 1st are marked as transfer memos. [Federal Election Commission](https://api.open.fec.gov/v1/schedules/schedule_a/?contributor_name=Corsell%2C+Peter&two_year_transaction_period=2026&api_key=DEMO_KEY&per_page=20&sort=-contribution_receipt_date), primary document, 2026-05-01.
- FEC records list Corsell's employer on the Sullivan contributions as Twenty First Century Utilities. [Federal Election Commission](https://api.open.fec.gov/v1/schedules/schedule_a/?contributor_name=Corsell%2C+Peter&two_year_transaction_period=2026&api_key=DEMO_KEY&per_page=20&sort=-contribution_receipt_date), primary document, 2026-05-01.
- FEC records show Charles Hu gave $7,000 to Sullivan Victory on April 24th, itemized as two $3,500 transfer memos to Alaskans for Dan Sullivan. [Federal Election Commission](https://api.open.fec.gov/v1/schedules/schedule_a/?contributor_name=Hu%2C+Charles&two_year_transaction_period=2026&api_key=DEMO_KEY&per_page=30&sort=-contribution_receipt_date&committee_id=C00609255&committee_id=C00570994), primary document, 2026-04-24.
- GCI called the FCC approval "an important step to completing the transaction," Broadband Breakfast reported. [Broadband Breakfast](https://broadbandbreakfast.com/fcc-approves-gci-quintillion-submarine-cable-deal-to-strengthen-alaska-broadband/), report, 2026-10-26.
- Quintillion's cable near Oliktok Point was severed by sea ice in January 2025, Broadband Breakfast reported. [Broadband Breakfast](https://broadbandbreakfast.com/quintillion-completes-arctic-cable-burial-restores-connectivity-after-9-months/), report, 2025-10-22.
- COMPUTE THREAD. The North Slope Borough is planning a natural gas power plant near Prudhoe Bay with private partners. [Dermot Cole, Reporting from Alaska](https://www.dermotcole.com/reportingfromalaska/2026/5/12/north-slope-maps-plan-for-largest-natural-gas-power-plant-in-the-world), report, 2026-05-12.
- COMPUTE THREAD. North Slope Power's proponents describe a 3 gigawatt first phase for the Prudhoe Bay gas plant. [Dermot Cole, Reporting from Alaska](https://www.dermotcole.com/reportingfromalaska/2026/5/12/north-slope-maps-plan-for-largest-natural-gas-power-plant-in-the-world), report, 2026-05-12.
- COMPUTE THREAD. North Slope Power describes the plant as designed to power colocated AI data centers and industrial load. [Dermot Cole, Reporting from Alaska](https://www.dermotcole.com/reportingfromalaska/2026/5/12/north-slope-maps-plan-for-largest-natural-gas-power-plant-in-the-world), report, 2026-05-12.
- COMPUTE THREAD. Proponents say the North Slope plant could later be expanded to 10 gigawatts. [Dermot Cole, Reporting from Alaska](https://www.dermotcole.com/reportingfromalaska/2026/5/12/north-slope-maps-plan-for-largest-natural-gas-power-plant-in-the-world), report, 2026-05-12.
- COMPUTE THREAD. The North Slope Borough and Twenty First Century Utilities partnered to create North Slope Power. [Dermot Cole, Reporting from Alaska](https://www.dermotcole.com/reportingfromalaska/2026/5/12/north-slope-maps-plan-for-largest-natural-gas-power-plant-in-the-world), report, 2026-05-12.
- COMPUTE THREAD. The Air Force announced in April that it would open military bases in Alaska to data center developers, The Alaska Current reported. [The Alaska Current](https://thealaskacurrent.com/2026/10/30/data-center-donations-dan-sullivan/), report, 2026-10-30.
- The Alaska Current reported that Peter Corsell contributed $14,000 in support of Sen. Dan Sullivan's reelection. [The Alaska Current](https://thealaskacurrent.com/2026/10/30/data-center-donations-dan-sullivan/), report, 2026-10-30.
- The Alaska Current reported that Saige managing partner Charles Hu donated $14,000 to Sullivan's candidate and joint fundraising committees. [The Alaska Current](https://thealaskacurrent.com/2026/10/30/data-center-donations-dan-sullivan/), report, 2026-10-30.

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