1089511--3/9/2010--ALASKA_COMMUNICATIONS_SYSTEMS_GROUP

related topics

{debt, indebtedness, cash}

{cost, contract, operation}

{capital, credit, financial}

{cost, operation, labor}

{system, service, information}

{customer, product, revenue}

{condition, economic, financial}

{regulation, government, change}

{stock, price, share}

{product, market, service}

{personnel, key, retain}

{tax, income, asset}

{acquisition, growth, future}

If we do not adapt to rapid technological advancements and changes in telecommunications standards, our ability to compete would be strained, and as a result, we would lose customers. Risks Relating to Our Debt. Our substantial debt could adversely affect our financial health, financing options and liquidity position. If interest rates increase, our net income could be negatively affected. Financial covenants in our debt instruments limit our operating flexibility. We require a significant amount of cash to service our debt, pay dividends, fund our growth projects, and meet other liquidity needs. The call options we purchased and the warrants we sold contemporaneously with the sale of our convertible notes may affect the trading price of our common stock and the value of the convertible notes. Risks related to our Business We may not successfully operate our AKORN and Northstar fiber facilities that connect Alaska to the Lower 48 profitably. Increased supply of interstate and international long-haul fiber in Alaska could adversely impact prices for bandwidth, which could in turn, adversely affect our projected and actual sales, margins and profitability of our fiber facility. We provide services to many customers over access lines, and if we continue to lose access lines, our revenues, earnings and cash flow from operations may decrease. Revenues from network access charges may be reduced or lost. We may not continue to receive as much Universal Service Fund support as we have in the past. We derive a significant portion of our wireless revenue from roaming charges. This revenue may fluctuate or decline in the future as a result of general economic, contractual, and competitive factors. The successful operation and growth of our businesses depends heavily on economic conditions in Alaska. We may incur substantial and unexpected liabilities arising out of our pension and deferred compensation plans. New governmental regulations may impose obligations on us to upgrade our existing technology or adopt new technology that may require additional capital and we may not be able to comply timely with these new regulations. Labor costs and the terms of our principal collective bargaining agreement may hurt our ability to remain competitive, which could cause our financial performance to suffer. We depend on key members of our senior management team. We rely on a limited number of key suppliers and vendors for timely supply of equipment and services for our network infrastructure and customer support services. If these suppliers or vendors experience problems or favor our competitors, we could fail to obtain the equipment and services we require to operate our business successfully. A failure of our network could cause significant delays or interruptions of service, which could cause us to lose customers. A failure of enhanced emergency calling services associated with our network may harm our business. Wireless devices may pose health and safety risks and driving while using a wireless phone may be prohibited; as a result, demand for our services may decrease. Future acquisitions could result in operating and financial difficulties.

Full 10-K form ▸

1089511--3/9/2010--ALASKA_COMMUNICATIONS_SYSTEMS_GROUP_INC