Alaska Communications trims dividend

Anchorage-based Alaska Communications has lowered its annualized dividend to shareholders by 77 percent as it prepares for less federal support and a new competitor.

The telecommunications company says there will be a 5-cent per share fourth quarter dividend. That will make the dividend on an annualized basis 20 cents per share. That compares to the prior level of 86 cents per share.

The company says for the year, this will let it keep $29.8 million cash. Spokeswoman Heather Cavanaugh says this is part of a long-term plan to grow the business.

She says the company expects a decline in federal support for a program that helps telecommunications firms in high-cost areas provide affordable service. It's also preparing for Verizon's entrance into the Alaska market and wants to pay down debt.