MTA holds capital credits, plans to hook up Chickaloon

PALMER — For the second straight year, the Matanuska Telephone Authority has decided not to distribute capital credits to its member-owners.

MTA officials say the co-op is under financial stress as the Federal Communications Commission progressively rolls out changes that by 2018 will end support provided to rural telecoms since 1997.

“Based on what is occurring at the FCC, the board felt at this time using that money toward investment in MTA’s network is important so that we can continue to provide MTA members with quality products and services. Therefore, this past year, the board decided not to distribute capital credit checks,” Carolyn Hanson, MTA’s director of marketing and sales, wrote in an email Friday.

She said the decision not to distribute the credits came at the end of last year. The credits range from $10 to much more. They’re calculated based on a customer’s tenure with the company and the size of its contract. Contracts can get pretty large — the Mat-Su Borough’s biggest employer, the school district, is a customer.

The co-op has traditionally sent the checks out most years, but this year and last were exceptions.

The issue has gotten the attention of U.S. Sen. Mark Begich, who has been championing a bill to “eliminate well-documented flaws” in the order dismantling the fund that helped rural telecoms.

“Telecommunications providers are often reluctant to serve remote areas because of the small customer base and high capital costs,” says a press release from Begich’s office regarding his Rural Broadband Investment Act. “We should be doing all we can to increase investment in rural broadband access. Better access will help to grow local economies, educate our children and prepare our workforce for current and future jobs. These are the kinds of investments that will pay dividends far into the future.

Hanson said in her email that the rest of Alaska’s congressional delegation — Sen. Lisa Murkowski and Rep. Don Young — are also engaging with the FCC to help stop the hit small telecoms are going to take as the program winds down.

Meanwhile, Hanson said MTA has scored a grant to expand its broadband data network into more remote areas of the Valley.

The $2.9 million grant from the U.S. Department of Agriculture-Rural Development, Community Connect grant program will lay fiber optic cables to Chickaloon and Glacier View.

“With this grant, MTA will expand existing fiber optic facilities into areas currently being fed by copper and microwave equipment. So the good news is MTA continues to make investments in the network with support like this grant,” Hanson wrote.

Hanson said in an interview that the cables will stretch for 60 miles and will be completely installed by 2015.

“It’s quite a bit of work to be done,” she said.

Contact Andrew Wellner at 352-2270 or andrew.wellner@frontiersman.com.