ANNUAL MEETING - JUNE 2018 1 Safe Harbor Statement Forward-Looking - PowerPoint PPT Presentation

ANNUAL MEETING - JUNE 2018 1

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 Alaska Communications' control. For further information regarding risks and uncertainties associated with Alaska Communications' business, please refer to the Alaska Communications’ SEC filings, including, but not limited to, our annual report on Form 10-K, 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 Measures In an effort to provide investors with additional information regarding our financial results, in particular with regards to our liquidity and capital resources, we have disclosed certain non-GAAP financial information such as Adjusted EBITDA, Adjusted Free Cash Flow and Net Debt, which management utilizes to assess performance and believes provides useful information to investors. The definition of these non- GAAP measures are contained in our quarterly earnings press releases. Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP measures and should not be considered a substitute for Net Income, Net Cash Provided (Used) By Operating Activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found in our earnings releases or on our website at http://www.alsk.com in the investment data section. Other companies may not calculate non-GAAP measures in the same manner as Alaska Communications. We do not provide guidance for Net Income and Net Cash Provided (Used) By Operating Activities. 2

Company Overview and Milestones Alaska Communications Acquires Fiber The Juneau and Acquires the Northstar submarine Telephone Utilities is formed by combining Network from Douglas Telephone cable, and builds AKORN, providing of the Northland 3 RLECs to become first ConocoPhillips to Company begins Alaska diverse submarine routes to begins operations statewide telecom allow entry into Oil & operations the Lower 48 company Gas Industry … … 1893 1921 1949 1998 1999 2008 2013 2015 Sells its interest in the Alaska Launches the Alaska Wireless Network to GCI, pays Alaska Anchorage Wireless Network (AWN) Communications down debt with Telephone Utility joint venture with GCI to completes its initial proceeds, and becomes one of begins operations better compete in public offering the lowest-leveraged companies wireless sector in the industry  125+ year operating history, Publicly traded (NASDAQ: ALSK) since 1999  ~600 employees (~25 outside AK), superb technical talent, tenured and seasoned management team  Extensive Fiber Network including significant submarine network operations capabilities  Superb record of success in Enterprise & Carrier, with emerging Mass Market success  Track record of gaining market share based on technology and service differentiation 3

ALSK Strategy for Growth  ALSK remains focused on executing its strategy through the following: − Maintaining and developing Enterprise & Carrier strengths ALSK’s Focused − Building new avenues of organic growth in Mass Market Company Strategy − Leveraging IT and Network technologies to lower costs and improve margins − Seeking accretive strategic opportunities to address scale and geographic diversification  Outlook for North American data consumption remains robust − Total data demand (PB per month) estimated to grow at 20% CAGR from 2016-2021 − Consumer IP traffic estimated to grow at 20% CAGR from 2016-2021 − Consumer internet video traffic estimated to grow at 24% CAGR from 2016-2021 − Business IP traffic estimated to grow at 23% CAGR from 2016-2021  Demand drivers impacting ALSK include: Video (primarily Consumer), Gaming (primarily Consumer), Cloud Foundation of Strong Migration (both Business and Consumer), Virtual & Augmented Reality (both Business and Consumer) Broadband Growth  Growth in mobile broadband demand will push high-density small cell deployments. Supports Continued Performance − North American mobile data demand est. to grow at 34% CAGR from 2016-2021 − Small cells needed to efficiently deliver content in metro markets – total small cells deployed expected to increase by almost 35x in next 10 years  Increased fiber density in Access network to provide Gbps speeds to dense small cell deployments  Fixed wireless provides 100+Mbps as an access technology and Gbps as a backhaul technology. Central Offices serving as “mini - data centers” for increased CDN density Continued strength of Broadband growth remains foundation for future performance Sources: Cisco Visual Networking Index: Forecast and Methodology, 2016 – 2021, ATLANTIC-ACM, SNL Kagan, and FirstNet. 4

Extensive Fiber Infrastructure Drives Future Growth Extensive Long Haul Fiber Network − Two diverse submarine routes to the Lower 48, with back- up/protection access to a third − Key fiber assets on Alaska’s North Slope supporting the oil and gas industry High Quality Fiber & Broadband Network − 100G wavelengths in state backbone with diverse routes − Commencing deployment of GPON access nodes in business areas − All military bases on fiber − Hillsboro OR facility has extensive submarine fiber expertise State of Art Secure ALL IP Network − Juniper IP/Advanced Ethernet core – statewide 2.0 Certified Ethernet services − Widely deployed Metaswitch voice application soft-switch network − CyrusOne InternetExchange and Microsoft ExpressRoute partnerships − New partnerships enhance security for cloud computing Recent investments in Fixed Wireless and Satellite capabilities extend network capabilities 5

Key Services  Provides support and management of IT systems, including 24x7 2012 Revenue Mix proactive network monitoring IT Services  Offers customized managed communications solutions to businesses with data security or network optimization needs 17%  Private and secure connections to the cloud offered over an 36% For Business advanced fiber based Ethernet network Data Networking  First and only carrier in Alaska with Carrier Ethernet 2.0 Certified 47% Services  Provides internet connectivity to small to mid-sized businesses and offers up to 200 Mbps with a dedicated line Consumer Business/Wholesale Regulatory/Other Internet Connectivity  Business Internet provides reliable, high-speed Internet with no data caps and no overage charges 2017 Revenue Mix  Secure hosted voice over internet solutions Voice Communications  State of art SIP trunking services provide IP voice leveraging on- premise IP PBX implementations 22% 17%  High-speed Unlimited Internet service without data caps or add- on fees for residential customers Unlimited Internet For Home  Provides a dedicated line with individual connections, to ensure 61% reliability  Provides voice to residential customers Consumer Business/Wholesale Regulatory/Other  Lifeline program provides access to services for only $1.00 a Home Voice month to qualified Alaskans 6

Competitive Landscape C OMPETITIVE P OSITIONING C OMPETITIVE A DVANTAGES  Strong competitive position within Alaskan market.  Submarine cables follow diverse routes.  Reputable track record in a competitive market  Only major provider with an uncapped data offering.  Owns 2 of the 4 submarine cables connecting Alaska to the  Secure connectivity and data storage through exclusive Lower 48 states. partnerships with CyrusOne and Microsoft.  Expansive and established fiber network focused on  Outstanding customer service. Enterprise & Carrier segment, now also supporting Mass  Highly trained and certified technical professionals supported Market segment by a seasoned management team  On-site and cloud data storage solutions.  Culture of advancing technology as the first among  Comprehensive service offering designed as a one-stop shop competitors to deploy Ethernet MPLS, VoIP, and more. for Enterprise IT needs. B USINESS & W HOLESALE G ROWTH C OMPARISON (Y/Y) Technology and Service provide differentiation Growth driven by share gain in broadband and increased wallet share of business IT spend 7

Diverse Customer Verticals C ARRIER / F ED O IL & G AS S TATE / L OCAL H EALTHCARE / E DUCATION SMB S TRATEGIC C OMMERCIAL Kodiak Area Native Assoc. 8