Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Jonathan Atkin - RBC Capital Markets.
Jonathan Atkin - RBC Capital Markets
I have a quick question for you regarding wireless and also with respect to long-haul fiber. On the wireless, on net migration is that happening as customers upgrade their phones or renew their contracts or are you doing that more based on network readiness? How are you dictating which batches of customers are migrating over to your own facilities for GSM? And then you mentioned a wireless data offer. Is that based on EVDO on the CDMA network or can you clarify how you’re offering the mobile broadband?
Ronald A. Duncan
We’re converting customers by giving them an incentive to come in to our conversion center or our stores for the SIM card swap. We’re contacting all of the existing GSM customers in batches and offering incentives to get them in. We need to physically grab the phone and we don’t have time to wait until the contracts are renewed, but so far we’re being adequately successful in getting folks in.
We got off to a late start because some IT systems weren’t quite ready on schedule but we’re basically on schedule with our projected requirements for switching the customers over and to date not having any materially difficulty getting them to come in to let us change their phones. They do get plan upgrades and some pricing benefits when they make the change.
The data offering that we just floated is based on the CDMA network in the EVDO Rev-A and it’s tied in as an adjunct to our cable modem platform or our cable modem product at some very aggressive and attractive pricing for our customers who are already GCI cable modem customers.
Jonathan Atkin - RBC Capital Markets
With respect to long-haul, any thoughts on the acorn builds and what impact that’s having on contracts and the pricing and so forth?
Ronald A. Duncan
I think the pricing is compressing as we sort of expected on the Anchorage/Seattle route. We continue to see that route priced quite aggressively although not beyond what we anticipated in our forecasts. We haven’t seen any real material impact on our business yet.
Jonathan Atkin - RBC Capital Markets
On the regulation side of things, any early read on how the upcoming change in Administration affects the business?
Ronald A. Duncan
I think two days is probably a bit early to tell other than the macro trends which have probably been better enunciated by the National Press than they would be by us.
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