8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 8-KCURRENT REPORTPursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):   November 5, 2009

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.(Exact name of registrant as specified in its charter)

Delaware	000-28167	52-2126573
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

600 Telephone Ave, Anchorage, Alaska	99503
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 907 - 297 - 3000

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 5, 2009, Alaska Communications Systems Group, Inc. reported its financial results for the quarter ended September 30, 2009.  The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

Exhibit No.	Description
Exhibit 99.1	Alaska Communications Systems Group, Inc. Press Release dated November 5, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	November 5, 2009	Alaska Communications Systems Group, Inc.
		/s/ Leonard A. Steinberg
		Leonard A. Steinberg
		Corporate Secretary

EX-99.1

Exhibit 99.1

Alaska Communications Systems Reports Third Quarter 2009 Results

-Total Revenue of $91.3 million level with Prior Year¹-

-Wireless and Enterprise Total 53 percent of Revenue-

-Closes $10.3 Million Enterprise Contract-

- EBITDA Increases 2.8 percent to $34.9 Million –

-Reduces 2009 Annual Guidance for Revenue and EBITDA -

ANCHORAGE, Alaska--(BUSINESS WIRE)--November 5, 2009--Alaska Communications Systems Group, Inc. (“ACS”) (NASDAQ: ALSK) today reported financial results for its third quarter ended September 30, 2009.

“The ACS strategy of capturing growth in the enterprise and wireless segments to offset reductions in legacy wire line business continues to deliver the right kind of revenue and earnings mix,” said Liane Pelletier, ACS president and chief executive officer. “For the quarter, we delivered stable revenue and EBITDA growth as a result of new enterprise customers buying business IP services.”

“Our participation in the enterprise market is concentrated on selling data services as they most fundamentally allow ACS to help organizations transform how they do business. In the quarter 80 percent of enterprise revenue was data versus voice. Since the last call, the most substantial win came from a federal agency, with a solution valued at more than $10 million, to be earned over six years. Clearly, ACS will also continue to leverage its large Alaska footprint to serve lower 48 carrier voice needs as well, but this will be a volatile segment as carrier market shares shift, and as voice becomes a data application,” said Pelletier.

“Our participation in the wireless market this year continues to challenge ACS - a function of the economy and the iPhone. In terms of the economy, reports just out summarize what ended up being the softest tourist season in years, affecting both Alaska businesses and visitors to the state. In terms of the $99 iPhone, ACS’ high quality subscriber base, able to afford the monthly service charges associated with the iPhone, were again attracted away at very high rates. ACS remains focused on delivering superior mobile data coverage, speed and local service to attract data users. In the quarter, ACS generated more gross additions than the prior three quarters, and grew data ARPU 56 percent year over year, but the subscriber additions were insufficient to outpace churn to the iPhone. We look forward to introducing Android-powered handsets over the next few months and hope they will re-establish a level playing field in devices,” concluded Pelletier.

Financial Highlights: Third Quarter 2009 Compared to Third Quarter 2008

• Revenues of $91.3 million in line with $91.3 million in the prior year.
  • Enterprise revenues increased $2.7 million, or 31 percent.
  • Wireless revenue declined by $2.0 million or 5.0 percent due to declines in roaming revenue and subscribers.
  • Retail, wholesale and access wireline revenues declined by $0.7 million, or 1.7 percent, with the current quarter benefiting from $2.5 million in out-of-period network access reserves compared to $1.4 million in 2008.
• EBITDA of $34.9 million was up 2.8 percent from prior year EBITDA of $33.9 million:
  • Wireline EBITDA of $18.2 million increased by 6.2 percent, with gains in enterprise and higher levels of network access more than offsetting declines in retail and wholesale.
  • Wireless EBITDA of $16.7 million was in line with the prior year with tight expense management offsetting lower contributions from subscriber and roaming revenue.
• Net cash provided by operating activities of $21.3 million was down 26.5 percent from $29.0 million in the prior year period. The annual decline is entirely attributable to working capital changes.
• Net income before extraordinary item of $0.3 million, or $0.01 per diluted share, compared to net income of $1.8 million, or $0.04 per diluted share, in the prior year. The decline in net income is attributable to a $4.9 million increase in depreciation expense resulting from an assessment that with changes in technology, asset salvage values previously set by regulators and historically viewed as reasonable, were no longer appropriate.
• In the third quarter 2009, ACS ceased to follow regulatory accounting rules following its July 1, 2009 conversion to price cap regulation and recognized an extraordinary gain, net of tax, of $37.3 million following the extinguishment of certain regulatory liabilities.

“While we are delighted with the enterprise contracts that we have closed in the quarter and the strength of our provisioning backlog, enterprise revenue did decline by $0.2 million on a sequential basis,” said David Wilson, ACS executive vice president and chief financial officer. “In order to assess the underlying momentum in enterprise, a deeper dive into the major revenue drivers in the quarter is required:

• Firstly, the expiration of a 2007 capacity exchange agreement with another carrier mid way through the quarter resulted in a $0.4 million drop in revenue that had no impact on EBITDA or cash flows;
• Secondly, share shifts that took place one layer below our level of carrier relationship resulted in a $0.4 million sequential decline in voice revenue; and
• Finally, we turned up $0.6 million of new business, significant, but somewhat below our expectations.”

“While we are changing our year end guidance to reflect challenges in our carrier voice and wireless businesses, and delays in booking new enterprise revenues, our dividend payout ratio for the year continues to be within the 70-75 percent range set by the board. In addition, we anticipate $3.3 million in non-recurring cash payments in the fourth quarter from certain enterprise customers, and this is excluded from guidance,” concluded Wilson.

Metric Highlights: Third Quarter 2009 Compared to Second Quarter 2009

• Wireless monthly churn of 2.4 percent compared to 2.0 percent in the second quarter. Key drivers of the increase were a loss of market share to the iPhone and higher ACS initiated disconnects for non-payment.
• Total wireless subscribers decreased by approximately 2,300 to 139,700.
• Wireless ARPU increased by $1.90 to $64.51 from $62.61 with a $0.54 gain in data ARPU and a $1.76 gain in CETC. Data ARPU increased by 7.4 percent to $7.84 from $7.30.
• DSL lines declined by 500 to 46,400 while ISP ARPU increased by 1.0 percent to $34.37.
• Retail local access lines declined by 1.8 percent to 166,600 as a result of cord cutting and seasonality.
• Total local access lines decreased by approximately 2.3 percent to 189,800.

Nine Month Financial Review

For the nine months ended September 30, 2009, revenues were $263.4 million, compared to $264.3 million in the same period last year. Net income before extraordinary item was $3.7 million, or $0.08 per diluted share, compared to net income of $8.3 million, or $0.19 per diluted share, in the same period in 2008. Net cash provided by operating activities for the first nine months of 2009 was $73.0 million compared to $69.2 million in the same period in 2008. EBITDA for the nine months ended September 30, 2009 was $98.6 million, compared to $99.3 million in the same period last year.

2009 Business Outlook

For the full-year 2009, ACS is changing its revenue and EBITDA guidance.

• Revenues are now expected to be approximately $350 million versus prior guidance of exceeding this level; and
• EBITDA is now expected to be approximately $128 million rather than exceeding $132 million.

As previously reported ACS expects:

• Maintenance capital expenditures are expected to be below the $40 million spent in 2008;
• Funding required for the completion of AKORN; the upgrade of Northstar; and the build of a second fiber route between Anchorage and Fairbanks to be $11 million; and
• Net cash interest expense of $36 million.

¹ Our FCC approved conversion to price cap regulation went into effect July 1, 2009. At the effective date, ACS ceased to follow regulatory accounting rules resulting in the elimination of certain intercompany transactions with regulated affiliates that were not previously eliminated during consolidation. This change reduced the absolute level of reported revenue by approximately 10 percent but had no impact on the absolute levels of reported EBITDA or cash flows.

Conference Call

The company will host a conference call and live webcast today at 5:00 p.m. Eastern Time. Parties in the United States and Canada can call 866-225-8754 to access the conference call. Parties outside the United States and Canada can access the call at 480-629-9692. The live webcast of the conference call will be accessible from the "Events Calendar" section of the company's website (www.alsk.com). The webcast will be archived for a period of 90 days. A telephonic replay of the conference call will also be available two hours after the call and will run until Wednesday, November 11, 2009 at midnight ET. To hear the replay, parties in the United States and Canada can call 800-406-7325 and enter pass code 4176885. Parties outside the United States and Canada can call 303-590-3030 and enter pass code 4176885.

About Alaska Communications Systems

Headquartered in Anchorage, ACS is Alaska's leading provider of broadband and other wireline and wireless solutions to Enterprise and mass market customers. The ACS wireline operations include the state's most advanced data networks and the only diverse undersea fiber optic system connecting Alaska to the contiguous United States. The ACS wireless operations include a statewide 3G CDMA network, reaching across Alaska from the North Slope to Ketchikan, with coverage extended via best-in-class CDMA carriers in the Lower 49 and Canada. By investing in the fastest-growing market segments and attracting the highest-quality customers, ACS seeks to drive top and bottom-line growth, while continually improving customer experience and cost structure through process improvement. More information can be found on the company's website at www.acsalaska.com or at its investor site at www.alsk.com.

Forward-Looking EBITDA Guidance

This press release includes information related to management's estimate of EBITDA for the year ending December 31, 2009. EBITDA, as defined by the company, may not be similar to EBITDA measures used by other companies and is not a measurement under generally accepted accounting principles (GAAP). Management believes that EBITDA provides useful information to investors about the company's performance because it eliminates the effects of period-to-period changes in costs associated with capital investments, interest and stock-based compensation expense that are not directly attributable to the underlying performance of the company's business operations. 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, the company is not providing an estimate of year-end net cash provided by operating activities at this time.

Forward-Looking Statements

This press release includes 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. Readers 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 uncertainties and other factors, many of which are outside ACS' control. Such factors are, without limitation, adverse national economic conditions, including continuing disruption in the U.S. capital markets, adverse local economic conditions, including an unexpected downturn in the Alaska oil and gas or tourism markets, changes in capital expenditures, or other factors affecting the company's ability to generate sufficient earnings and cash flows to continue to make dividend payments to its stockholders; the company’s ability to complete, manage, integrate, market, maintain, and attract sufficient customers to the products and services it may derive from the construction of AKORN and purchase and integration of Crest Communications Corporation; adverse changes in labor matters, including workforce levels and labor negotiations; disruption of our suppliers' provisioning of critical products or services; the impact of natural or man-made disasters; changes in company's relationships with large carrier or enterprise customers or its roaming partners; changes in revenue from Universal Service Funds; unforseen changes in public policies; changes in accounting policies, including the Company’s application of regulatory accounting rules, which could result in an impact on earnings; or disruptive technological developments in the telecommunications industry. For further information regarding risks and uncertainties associated with ACS' business, please refer to the company's SEC filings, including, but not limited to, the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the company's SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com.

												Schedule 1
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, In Thousands, Except Per Share Amounts)
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
				2009			2008			2009			2008
Total operating revenues			$	91,262		$	91,285		$	263,439		$	264,267
Operating expenses:
	Cost of services and sales			35,318			35,048			101,886			98,745
	Selling, general & administrative			21,895			25,402			66,846			72,630
	Depreciation and amortization			23,724			18,790			59,784			54,391
Total operating expenses				80,937			79,240			228,516			225,766
Operating income				10,325			12,045			34,923			38,501
Other income and expense:
	Interest expense			(9,642	)		(8,886	)		(28,284	)		(25,258	)
	Interest income			30			532			81			1,541
	Other			-			(255	)		-			(255	)
Total other income and expense				(9,612	)		(8,609	)		(28,203	)		(23,972	)
Income before income tax				713			3,436			6,720			14,529
	Income tax expense			(388	)		(1,591	)		(3,018	)		(6,275	)
Income before extraordinary item				325			1,845			3,702			8,254
Extraordinary item, net of tax				37,346			-			37,346			-
Net income			$	37,671		$	1,845		$	41,048		$	8,254
Net income per share:
	Basic:
		Income on continuing operations	$	0.01		$	0.04		$	0.08		$	0.19
		Extraordinary item, net of tax		0.84			-			0.85			-
		Net income	$	0.85		$	0.04		$	0.93		$	0.19
		Weighted average shares outstanding		44,354			43,603			44,100			43,302
	Diluted
		Income before extraordinary item	$	0.01		$	0.04		$	0.08		$	0.19
		Extraordinary item, net of tax		0.82			-			0.83			-
		Net income	$	0.83		$	0.04		$	0.91		$	0.19
		Weighted average shares outstanding		45,136			44,428			44,873			44,306

						Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands Except Per Share Amounts)
			September 30,			December 31,
Assets				2009			2008
Current assets:
	Cash and cash equivalents		$	7,127		$	1,326
	Restricted cash			5,990			20,517
	Accounts receivable-trade, net of allowance of $6,984 and $5,912			37,919			40,433
	Materials and supplies			9,689			9,404
	Prepayments and other current assets			6,573			6,515
	Deferred income taxes			13,933			21,145
		Total current assets		81,231			99,340
Property, plant and equipment				1,425,035			1,392,951
Less: accumulated depreciation and amortization				(945,306	)		(891,899	)
	Property, plant and equipment, net			479,729			501,052
Non-current investments				855			1,005
Goodwill				8,850			8,850
Intangible assets, net				24,049			24,118
Debt issuance costs				6,614			8,554
Deferred income taxes				82,234			105,480
Deferred charges and other assets				648			452
Total assets			$	684,210		$	748,851
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
	Current portion of long-term obligations		$	883		$	666
	Accounts payable, accrued and other current liabilities			59,894			74,028
	Advance billings and customer deposits			9,736			10,399
		Total current liabilities		70,513			85,093
Long-term obligations, net of current portion				537,228			538,975
Other deferred credits and long-term liabilities				30,467			98,693
Total liabilities				638,208			722,761
Commitments and contingencies
Stockholders' equity (deficit):
	Common stock, $.01 par value; 145,000 authorized			444			437
	Additional paid in capital			207,154			231,813
	Accumulated deficit			(147,082	)		(188,130	)
	Accumulated other comprehensive loss			(14,514	)		(18,030	)
		Total stockholders' equity		46,002			26,090
Total liabilities and stockholders' equity			$	684,210		$	748,851

												Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, In Thousands)
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
				2009			2008			2009			2008
Cash Flows from Operating Activities:
	Net income		$	37,671		$	1,845		$	41,048		$	8,254
	Adjustments to reconcile net income to net cash provided (used) by operating activities:
		Depreciation and amortization		23,724			18,790			59,784			54,391
		Gain on extraordinary item, net of tax		(37,346	)		-			(37,346	)		-
		Amortization of debt issuance costs and original issue discount		1,752			1,636			5,205			3,640
		Stock-based compensation		851			3,103			3,416			5,618
		Deferred income taxes		388			1,647			3,018			6,331
		Provision for uncollectible accounts		1,562			996			3,632			3,616
		Other non-cash expenses		224			291			1,242			1,115
		Changes in operating assets and liabilities		(7,515	)		706			(6,992	)		(13,766	)
	Net cash provided by operating activities			21,311			29,014			73,007			69,199
Cash Flows from Investing Activities:
		Investment in construction and capital expenditures		(16,585	)		(37,318	)		(37,258	)		(107,900	)
		Change in unsettled construction and capital expenditures		2,654			8,093			(9,450	)		7,933
		Change in unsettled acquisition costs		-			-			(250	)		-
		Net change in short-term investments		-			375			-			790
		Net change in restricted accounts		721			16,236			14,527			(54,835	)
		Other investing activities		150			-			150			(1,350	)
	Net cash used by investing activities			(13,060	)		(12,614	)		(32,281	)		(155,362	)
Cash Flows from Financing Activities:
		Repayments of long-term debt		(3,220	)		(155	)		(30,185	)		(2,676	)
		Proceeds from the issuance of long-term debt		3,000			-			24,500			125,000
		Purchase of call options		-			-			-			(20,431	)
		Sale of common stock warrants		-			-			-			9,852
		Debt issuance costs		-			(56	)		-			(4,309	)
		Payment of cash dividend on common stock		(9,622	)		(9,370	)		(28,534	)		(27,901	)
		Payment of withholding taxes on stock-based compensation		(256	)		(7	)		(1,823	)		(3,321	)
		Proceeds from issuance of common stock		795			358			1,117			944
	Net cash provided (used) by financing activities			(9,303	)		(9,230	)		(34,925	)		77,158
Change in cash and cash equivalents				(1,052	)		7,170			5,801			(9,005	)
Cash and cash equivalents, beginning of period				8,179			19,033			1,326			35,208
Cash and cash equivalents, end of period			$	7,127		$	26,203		$	7,127		$	26,203
Supplemental Cash Flow Data:
	Interest paid		$	10,747		$	9,894		$	28,371		$	23,897
	Income taxes paid, net of refunds		$	(669	)	$	-		$	(669	)	$	417
Supplemental Non-cash Transactions:
	Property acquired under capital leases		$	230		$	1,301		$	890		$	1,359
	Dividend declared, but not paid		$	9,555		$	9,386		$	9,555		$	9,386
	Asset retirement obligation		$	288		$	59		$	291		$	91

												Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, In Thousands)
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
				2009			2008			2009			2008
Net cash provided by operating activities			$	21,311		$	29,014		$	73,007		$	69,199
	Adjustments to reconcile net income to net cash (provided) used by operating activities:
		Depreciation and amortization		(23,724	)		(18,790	)		(59,784	)		(54,391	)
		Gain on extraordinary item, net of tax		37,346			-			37,346			-
		Amortization of debt issuance costs and original issue discount		(1,752	)		(1,636	)		(5,205	)		(3,640	)
		Stock-based compensation		(851	)		(3,103	)		(3,416	)		(5,618	)
		Deferred income taxes		(388	)		(1,647	)		(3,018	)		(6,331	)
		Provision for uncollectible accounts		(1,562	)		(996	)		(3,632	)		(3,616	)
		Other non-cash expenses		(224	)		(291	)		(1,242	)		(1,115	)
		Changes in operating assets and liabilities		7,515			(706	)		6,992			13,766
Net income			$	37,671		$	1,845		$	41,048		$	8,254
	Add (subtract):
		Interest expense		9,642			8,886			28,284			25,258
		Interest income		(30	)		(532	)		(81	)		(1,541	)
		Depreciation and amortization		23,724			18,790			59,784			54,391
		(Gain) loss on disposal of assets, net and impairment of long-term investments		(15	)		259			454			1,018
		Gain on extraordinary item, net of tax		(37,346	)		-			(37,346	)		-
		Income tax expense		388			1,591			3,018			6,275
		Stock-based compensation		851			3,103			3,416			5,618
EBITDA			$	34,885		$	33,942		$	98,577		$	99,273
Note:		In an effort to provide investors with additional information regarding the Company's results as determined by generally accepted accounting principles (GAAP), the Company also discloses certain non-GAAP information which management utilizes to assess performance and believes provides useful information to investors. The Company has disclosed its net income before interest, provisions for taxes, depreciation expense, gain or loss on asset purchases or disposals, amortization of intangibles and stock-based compensation expense (EBITDA) because the Company believes it is an important indicator as it provides information about our ability to service debt, pay dividends and fund capital expenditures. EBITDA is not a GAAP measure and should not be considered a substitute for net cash provided by operating activities and other measures of financial performance recorded in accordance with GAAP.

												Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF OPERATING REVENUE AND EBITDA MARGIN BY SEGMENT
(Unaudited, In Thousands)
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
				2009			2008			2009			2008
Operating Revenue
		Retail	$	21,890		$	22,197		$	64,401		$	67,138
		Wholesale		2,836			3,452			8,795			11,160
		Access		18,426			18,251			49,396			55,701
		Enterprise		11,218			8,531			33,518			23,029
	Wireline			54,370			52,431			156,110			157,028
	Wireless			36,892			38,854			107,329			107,239
Total operating revenue			$	91,262		$	91,285		$	263,439		$	264,267
Wireline EBITDA
	Operating revenue		$	54,370		$	52,431		$	156,110		$	157,028
	Operating expenses (exclusive of depreciation)			(36,921	)		(38,035	)		(110,710	)		(108,627	)
	Stock-based compensation			761			2,753			3,056			4,985
	Net loss on disposal of assets			-			4			31			790
Wireline EBITDA			$	18,210		$	17,153		$	48,487		$	54,176
	EBITDA Margin			33.5	%		32.7	%		31.1	%		34.5	%
Wireless EBITDA
	Operating revenue		$	36,892		$	38,854		$	107,329		$	107,239
	Operating expenses (exclusive of depreciation)			(20,292	)		(22,415	)		(58,022	)		(62,748	)
	Stock-based compensation			90			350			360			633
	Net (gain) loss on disposal of assets			(15	)		-			423			(27	)
Wireless EBITDA			$	16,675		$	16,789		$	50,090		$	45,097
	EBITDA Margin			45.2	%		43.2	%		46.7	%		42.1	%

										Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
INVESTMENT IN CONSTRUCTION AND CAPITAL
(Unaudited, In Thousands)
	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
		2009			2008			2009			2008
Investment in construction and capital	$	16,585		$	37,318		$	37,258		$	107,900
Capitalized interest		(524	)		(1,090	)		(3,005	)		(2,079	)
Investment in construction and capital, net of capitalized interest	$	16,061		$	36,228		$	34,253		$	105,821
Growth		2,834			23,952			9,686			73,170
Maintenance and other		13,227			12,276			24,247			32,651
Capital funded by the selling shareholders of Crest		-			-			320			-
Investment in construction and capital, net of capitalized interest	$	16,061		$	36,228		$	34,253		$	105,821

										Schedule 7
	ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
	KEY OPERATING STATISTICS
(Unaudited)
				September 30,			June 30,			September 30,
					2009 (a)			2009			2008
Wireline:
	Retail
		Local			166,560			169,548			177,279
		Quarterly growth rate in retail local telephone access lines			-1.8	%		-1.1	%		-1.8	%
		Average monthly revenue per subscriber for the quarter		$	18.50		$	19.66		$	19.82
		Long Distance
			Long distance subscribers		60,970			61,807			64,692
			Average monthly retail revenue per subscriber for the quarter	$	19.51		$	19.84		$	20.65
		Internet
			DSL subscribers		46,360			46,845			47,639
			Dial-up subscribers		6,182			6,743			7,394
					52,542			53,588			55,033
			Average monthly DSL & dial-up revenue per subscriber for the quarter	$	34.37		$	34.04		$	32.09
	Wholesale
		Resale access lines			7,368			7,815			8,577
		UNE lines			15,922			16,978			21,543
					23,290			24,793			30,120
		Quarterly growth rate in wholesale local access lines			-6.1	%		-3.7	%		-10.6	%
		Average monthly revenue per subscriber for the quarter		$	29.16		$	29.23		$	28.37
Wireless:
		Wireless subscribers (b)			139,726			142,028			149,927
			Average monthly churn for the quarter (b)		2.4	%		2.0	%		2.1	%
			Average monthly revenue per retail subscriber for the quarter (c)	$	64.51		$	62.61		$	60.79
	(a)	Average monthly revenue per subscriber includes the full elimination of intercompany revenue and the reclass of bad debt expense from contra revenue to SG&A expense.
	(b)	Prior period metrics have been adjusted reflecting changes disclosed in our April 21, 2009 press release.
	(c)	CETC added $14.46 to wireless ARPU in the third quarter of 2009, $12.70 in the second quarter of 2009, and $10.33 in the third quarter of 2008.

																		Schedule 8
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
QUARTERLY OPERATIONS WITH RECLASS AND ELIMINATION ADJUSTMENTS
(Unaudited, In Thousands)
			2009							2008
			Q2			Q1			Q4 (a)			Q3 (a)			Q2			Q1
Operating revenues:
		Retail	$	21,069		$	21,442		$	22,148		$	22,197		$	22,548		$	22,393
		Wholesale		2,918			3,041			3,208			3,452			3,772			3,936
		Access		15,352			15,618			16,531			18,251			16,238			21,212
		Enterprise		11,463			10,837			10,109			8,531			7,630			6,868
	Wireline			50,802			50,938			51,996			52,431			50,188			54,409
	Wireless			35,217			35,220			34,875			38,854			34,964			33,421
Total operating revenues				86,019			86,158			86,871			91,285			85,152			87,830
Operating expenses:
	Cost of services and sales			34,225			32,343			33,278			35,048			32,964			30,733
	Selling, general & administrative			21,840			23,111			28,012			25,402			23,426			23,802
	Depreciation and amortization			15,175			20,885			19,611			18,790			19,138			16,463
	Loss on impairment of goodwill and intangibles assets			-			-			29,641			-			-			-
Total operating expenses				71,240			76,339			110,542			79,240			75,528			70,998
Operating income (loss)				14,779			9,819			(23,671	)		12,045			9,624			16,832
Other income and expense:
	Interest expense			(10,302	)		(8,340	)		(8,814	)		(8,886	)		(9,143	)		(7,229	)
	Interest income			17			34			154			532			706			303
	Other			-			-			10			(255	)		-			-
Total other income and expense				(10,285	)		(8,306	)		(8,650	)		(8,609	)		(8,437	)		(6,926	)
Income (loss) before income tax				4,494			1,513			(32,321	)		3,436			1,187			9,906
	Income tax (expense) benefit			(1,961	)		(669	)		13,250			(1,591	)		(554	)		(4,130	)
Net income (loss)			$	2,533		$	844		$	(19,071	)	$	1,845		$	633		$	5,776
Net income (loss) per share:
	Basic		$	0.06		$	0.02		$	(0.44	)	$	0.04		$	0.01		$	0.13
	Diluted		$	0.06		$	0.02		$	(0.44	)	$	0.04		$	0.01		$	0.13
Weighted average shares outstanding:
	Basic			44,195			43,746			43,656			43,603			43,362			42,939
	Diluted			44,651			44,527			43,656			44,428			44,304			44,308
(a)	Financial results for Q3 and Q4 2008 have been also been adjusted for the bifurcation of our convertible debt and certain other reclassifications to make the historical statements comparable to the current reporting format.

CONTACT:
ACS Investors:
Alaska Communications Systems
David Wilson, 907-564-7556
investors@acsalaska.com