Alaska Communications

1 | Alaska Communications - March 2011

ACS Safe Harbor Statement

Forward-Looking Statements
We have included in this presentation certain "forward-looking statements," as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs
as well as on a number of assumptions concerning future events made using information currently available to
management. You are cautioned not to put undue reliance on such forward-looking statements, which are not a
guarantee of performance and are subject to a number of risks, uncertainties and other factors, many of which
are outside ACS' control.

For further information regarding risks and uncertainties associated with ACS' business, please refer to the
company's SEC filings, including, but not limited to, our annual report on Form 10-K for the fiscal year ended
December 31, 2010, quarterly reports on Form 10-Q filed subsequently, and other filings with the SEC, included
under headings such as “Risk factors” and “Management’s discussion and analysis of financial condition and
results of operations.”

Non-GAAP Financial Measures

This presentation includes management’s estimate of EBITDA for the year ending December 31, 2011.
Management believes the most directly comparable GAAP measure would be “Net cash provided by operating
activities.” Due to the difficulty in forecasting and quantifying the amounts that would be required to be included in
this comparable GAAP measure, however, the company is not providing an estimate of 2011 net cash provided
by operating activities at this time.

2 | Alaska Communications - March 2011

Alaska Communication Systems (ACS):
A smart choice …

1.) The right strategic choice: • Mobile Data and Cloud

Enablement

2.) Proven competitive advantage: • Differentiated network assets- a

track record of investment and
performance

3.) Profitable execution: • Disciplined team- an organization

that delivers

• Rewarded with high dividend

4.) Excellent shareholder return: payout policy

3 | Alaska Communications - March 2011

Journey of Transformation:
Revenue Growth and Shift

ACS Revenue 2004: ~$285M (1) ACS Revenue 2010: ~$342M

Wireless 41%
Wireless 19%

Enterprise 6%
Traditional Wireline 75% Traditional Wireline 45%

Enterprise 14%

(1) Revenues eliminate intracompany transactions following the company’s move to price cap regulation.

4 | Alaska Communications - March 2011

Wireline and Wireless Network: Built for Data

Wireless coverage
• 85% POPs - 75% EVDO Rev A
• 75% in local footprint
• Premier L48/Canada Roaming
Agreements
• Ample 3G/4G Spectrum

Wireline data network

• Transformed Local Assets
• The ONLY Statewide MPLS
and Metro Ethernet network
• >90% coverage in towns >5K
• Peering points (Seattle & Portland)

Long Haul Fiber

• AK, WA and OR
• Redundant Submarine cables
• Manage 1/3 of trans-Pacific cable traffic
(Ex. TATA, Southern Cross, TPE)

5 | Alaska Communications - March 2011

Wireless: 3G Data and Voice Across North America

AK coverage:
• 85% POPs
• 75% EVDO Rev A

Vertically integrated: Outside AK coverage:

• 75% towers in ACS LEC footprint • 3G data and voice roaming with
• 2 ACS owned submarine fibers to best carriers in Lower 49 and
peering points in OR and WA Canada

Ample spectrum:
• 3G: 35 MHz
• 4G: 20 MHz
ACS peering points in Seattle and Portland

6 | Alaska Communications - March 2011

Wireless: Growth through Data
ACS Data as % of Service Revenue (1)
• Upside potential from data
• Largest 3G AK network
• First Android device in Q1 2010
• 5 Androids during 2010
• HTC Hero, Desire, Wildfire; MOT
Milestone; LG Axis
• Post paid data-centric device penetration ~doubled
• 35% in Q4 2010
• 18% in Q4 2009
• Increase in data centric device sales
ACS Wireless Revenue ($M)
• 60% of sales in Q4 2010
($ in millions)
• 24% of sales in Q4 2009
• Post paid data ARPU up 53%
• $13.16 in Q4 2010
• $8.62 in Q4 2009
• Lots of headroom
• Total wireless data revenue up 81% y-o-y
• Alaska exempt from CETC cap
• Positioned for an early roll out of 4G
(1) Service revenue equals total wireless revenue less device, roaming and CETC revenues
7 | Alaska Communications - March 2011
 Enterprise: Standards-Based Technology:
Pairs with L48
Only Metro Ethernet / MPLS in AK:
In towns over 5,000:
• 92% Metro Ethernet coverage
• 96% MPLS coverage

Data hosting centers:

• Anchorage AK
• Hillsboro OR

2 ACS cables connect Alaska and Pac NW: Account Executives:

• Diverse routes • Alaska
• OR landings • Oregon
• Diverse fiber to Portland and Seattle • Washington, D.C.
• Peer for MPLS and IP

ACS manages 1/3 all trans-Pacific cables

Managed services:
• WAN
ACS peering points in Seattle and Portland • LAN through partnership with Managed IT firm

8 | Alaska Communications - March 2011

 Enterprise: Growth through Data

Enterprise Revenue ($M) • Entered the market in April 2009 with:

($ in millions) • 2 undersea fibers to Pac NW
• Statewide Metro Ethernet and MPLS
• Data hosting centers in AK and OR
• 89% of revenue from data
• Limits exposure to price compression and
traffic reductions in long haul carrier voice
• Invested 49% in Alaska IT pro services firm
• Accelerating revenue growth
• Q4 2010 revenue up 17% vs. Q4 2009 and
9% vs. Q3 2010

9 | Alaska Communications - March 2011

Enabling Cloud Services for Business
• 855 Skilled Alaskan Professionals
Connect • Client Account Managers in AK, DC,
• MPLS/Metro Ethernet OR and KS
• Wireless & Mobile • Certified Engineers
Broadband • PMI Certified PMPs
• Dedicated Internet Access
• Private Line People
• Unified Communications
• Video Conferencing
• Integrators
CONNECT
HOST Partnerships • IT and Unified Communications providers
Host MANAGE • Telecommunications Leaders
• Hosted Space
• Hosted Storage
• Hosted Platform
Assets
• Hosted Applications
• The only statewide Metro Ethernet and MPLS network
• The largest 3G data wireless network
Manage • The only redundant 24/7 NOCC in AK and OR
• Network Management
• IT Management • Geographically Diverse fiber network connecting AK to L48
(ConstantlyOn IT) • Redundant Data Hosting Centers in AK and OR
• Fleet Management

10 | Alaska Communications - March 2011

Traditional Wireline: Leveraged by Growth Segments

• Enables vertical integration

Traditional Wireline Revenue ($M)
• Backhaul for Wireless towers
($ in millions) • Last mile for Enterprise locations
• Delivers operating performance
• Owners economics
• End-end quality management
• Maximum flexibility
• 157K retail lines – majority business
• Consumer lines have over 50% DSL
penetration
• Less than 10% of 2010 total company
revenue is from legacy consumer voice

11 | Alaska Communications - March 2011

 Capital: Invested for Data

Capital Expenditures ($M)

($ in millions)
• Maintenance capex accommodates
network migration (e.g. EVDO Rev A)

• Growth capex targets unique high

ROI projects (e.g., entry into CDMA
Wireless, entry investments for
Enterprise)

• 2011 growth capex targets tower

backhaul to support the launch of 4G
Wireless and connectivity sales to
other wireless carriers

(1) 2011 guidance

12 | Alaska Communications - March 2011

Total Margin Management:
Efficiency and Transformation

Headcount • Process Improvement programs drive

efficiencies and improve customer service
• Revenue up 20% and EBITDA up 22%
since 2004
• Headcount down ~20%
• Workforce aligned with shift in revenue
• Industry leading wireless EBITDA margins
• 45% in 2010
• Expanding wireline EBITDA margins
• 32% in 2010 vs. 29% in 2009

13 | Alaska Communications - March 2011

Shareholders Rewarded with High Dividend Payout Policy

2011 Distributable Cash Flow ($M) (1)

($ in millions)

• Current yield of 8.5%

• Minimal working capital needed

• Significant tax shield (beyond 2015)

($ in millions) • Long term payout ratio target of 70-

75%
• 70% at guidance

(1) 2011 guidance

14 | Alaska Communications - March 2011

Alaska Communication Systems (ACS):
A smart choice …

1.) The right strategic choice: • Mobile Data and Cloud

Enablement

2.) Proven competitive advantage: • Differentiated network assets- a

track record of investment and
performance

3.) Profitable execution: • Disciplined team- an organization

that delivers

• Rewarded with high dividend

4.) Excellent shareholder return: payout policy

15 | Alaska Communications - March 2011

16 | Alaska Communications - March 2011