Outage Update

Dear Community Stakeholders,

We are pleased to report that back-up services in Nome are active, operational, and stable. We are diligently working with each of our local distributors to restore critical services for as many in affected communities as possible.

The next step includes integration on the overall network to deliver back-up services in Kotzebue, Point Hope, Wainwright, and Utqiagvik. This will occur in stages over the next two weeks. As with Nome, we are actively working with our local distributors to allocate and distribute available capacity.

The near-term solution – the planned terrestrial route from Utqiagvik to Deadhorse – continues to advance. This includes progress in obtaining necessary permits from federal authorities. Our community partners have been instrumental in the progress made in the last four weeks, and we enter a pivotal week for approval of all required permits.

Quintillion and key stakeholders are also continuing our engagement with FEMA to secure final funding required to build this land route. FEMA’s decision on the BRIC grant application – which the agency has had for nearly a year – continues to be the linchpin of our ability to execute a spring build of the planned land route. Please know that we are working closely with our community partners, the Alaska Congressional Delegation, and others to get a FEMA decision as quickly as possible.

We continue to update the Quintillion website and FAQs to keep everyone informed, though timing of developments will be unpredictable going forward. Despite this uncertainty, we are bringing all resources to bear to restore service. Your support continues to motivate our team to make consistent progress and produce results.

Sincerely,

Mac

Dear Community Stakeholders,

As described in last week’s update, Quintillion is finalizing efforts for backup services for affected communities. Barring any unanticipated technical obstacles, our plan is to distribute capacity to Northwest Alaska and North Slope communities utilizing a ground station in Nome and the Quintillion subsea fiber network, which is operational apart from the damaged segment off Oliktok Point. Equipment procurement and network installation, integration, and reconfiguration are underway and progressing as planned. At this time, we expect initial restoration services in Nome by the end of this week, with backup services turned on for Northwest Artic and North Slope villages the following week.

In parallel, Quintillion continues our collaboration with sea ice experts and researchers to understand the changing Arctic environment, especially in the Beaufort Sea. The insight and counsel from scientific experts – such as findings from this new study by the Alfred Wegener Institute – will inform and assist Quintillion’s subsea repair plans, including routing and burial. One thing is clear: shifting sea ice will continue to create unpredictability for broadband infrastructure in Alaska. This makes investments in network resiliency and redundancy more critical than ever.

The near-term solution – the planned terrestrial route from Utqiagvik to Deadhorse – continues to make significant progress. This includes movement toward acquiring necessary permits from federal authorities. The dialogue with federal agencies is constant, and our community partners have been instrumental in the progress made in the last three weeks.

Concurrent with the permitting efforts, Quintillion and key stakeholders have been working with FEMA leadership to secure final funding required to build this land route. Ultimately, the fate of this project is still in FEMA’s hands – it will decide whether the project will proceed this spring. While we remain hopeful that the federal government will support an early 2025 build, it is currently uncertain whether the collective actions and support of Alaska stakeholders will be enough to convince FEMA to award the grant and make funds available swiftly.

We continue updating the Quintillion website and published FAQs to keep everyone informed. Although developments will be unpredictable going forward, we are committed to providing you with timely updates as the process progresses. In short, when we know, you will know.

Your partnership has never been more important than it is today. And for your steadfast support, we thank you.

With respect,

Mac

Dear Community Stakeholders,

Quintillion met with sea ice experts and researchers at the University of Alaska Fairbanks (UAF) to understand sea ice conditions at the time of the cable cut. Following a review of satellite images taken just after the fault occurred, Dr. Andrew R. Mahoney, research associate professor at UAF, concluded, “the best probable cause was sea ice movement involving a very large pressure ridge or iceberg, with a keel deep enough and strong enough to gouge the bottom of the Beaufort Sea across the cable route, ripping it out of the burial location and stretching it until it snapped.” We have engaged other research organizations, such as Fairweather LLC and its weather/ice observations and forecasting experts, to confirm our findings.

Regarding restoration of critical services, we have contracted for backup capacity. The plan, barring any technical obstacles, is to distribute capacity to all affected communities utilizing a ground station in Nome and the Quintillion subsea fiber network, which is operational apart from the damaged segment off Oliktok Point. Network testing and reconfiguration will be required to restore priority services using this capacity. The process is expected to take up to two weeks.

Regarding near-term redundancy and the terrestrial route from Utqiagvik to Deadhorse, this past week we conducted several productive meetings with FEMA, BLM, FCC, the Department of Defense, and our congressional delegation. During these sessions, Quintillion leadership strongly advocated for expediency to advance the prospect of building the terrestrial route this spring. Although Quintillion’s meetings in DC were productive, the future of the project is still in the hands of FEMA and other federal agencies. Without definitive action from FEMA, the project cannot proceed until the grant is formally awarded and can be drawn against to fund construction. Along with various community partners and stakeholders, we will continue to make the case for swift decisions and pre-emptive actions by the federal government. However, at this time, it is uncertain if those actions will take place now or this time next year.

Quintillion is also advancing plans for a subsea cable repair during the open water season. This work includes identifying the specialized tooling needed for the repair, as well as exploring enhanced burial techniques and routing options to better protect our cable and network in such a challenging, and changing, Arctic environment.

We continue to update the Quintillion website and published FAQs to keep all informed. Additionally, we are working cooperatively and communicating with interested stakeholders and our customers as developments occur. We appreciate your continued support and partnership during this challenging period.

Kind regards,

Mac

Dear Community Stakeholders,

Since detecting the network outage on January 18, Quintillion’s team has been working around the clock to evaluate the subsea fiber cut and restore critical services. Collaborating with scientific, academic, and technical experts, Quintillion has concluded that an ice scour caused the severing of the cable approximately 32-37 miles north of Oliktok Point. Based on imaging and analysis by sea ice experts, there is clear evidence of fast ice and sea ice activity in the fault area. Quintillion is continuing our examination of the area and is working with commercial and government entities to possibly deploy remote operating vehicles with high-resolution cameras for additional forensic information.

In parallel to our investigation of the fiber break, Quintillion has aggressively moved forward with local partners to restore critical services in the near-term. While the installation process will likely take several weeks, Quintillion’s objective is to restore a significant level of service by linking our fiber between Nome and Utqiagvik with a network at the satellite ground station in Nome for additional transport capacity. This hybrid solution will provide back-up services until the fiber in the Beaufort Sea is fully repaired.

Quintillion is also working with a variety of stakeholders urging the federal government to award a Federal Emergency Management Agency (FEMA) grant to expedite service restoration. The goal is to have FEMA funds released within the next few weeks and to begin a winter build of an interconnected terrestrial route from Utqiagvik to Deadhorse, which would effectively bypass the area of fault on the subsea network. This project, with proper support and acceleration by federal agencies, could be completed this spring. However, there is moderate probability of success, based on challenges beyond Quintillion’s control, including the permitting process being slowed by federal government rules/regulations.

Below is an excerpt from the FEMA proposal/application, which was initiated in July 2023, filed in February 2024, and in the FEMA pre-award phase:

Quintillion has also initiated longer-term efforts to repair the subsea cable. Our technical team is mobilizing repair and installation vessels and formulating plans for a subsea fix, depending on additional information from our forensic investigation. As we observe significant changes in ice movement and behavior in the Beaufort Sea due to climate change, Quintillion will develop plans to reroute the Oliktok landing to work around an increasingly volatile area. Stakeholder input and coordination will be crucial.

Quintillion fully understands and appreciates the urgency of the situation, given the importance of high-speed internet to so many on the North Slope and in Northwest Alaska. Our team is working tirelessly on immediate, short-term, and longer-term solutions, and we are committed to a full restoration of services as quickly as possible. While there is much beyond Quintillion’s control and in the hands of the federal government and nature, we will not stop working until the job is complete. We appreciate the ongoing support and assistance from our community partners and Alaska’s elected officials, and we will continue to provide updates as developments occur.

Kind regards,

Mac

The following statement is attributable to Mac McHale, Quintillion President:

“Early on Saturday, January 18th, Quintillion became aware of a network outage affecting North Slope and Northwest Alaska communities. Our team immediately began assessing the situation and have determined via initial testing that there was a subsea fiber cut in the Beaufort Sea. Winter conditions – including sea ice and darkness – have made it impossible to pinpoint an exact location of the cut and the extent of the cable damage. Unfortunately, the outage will be prolonged, and sea ice will prevent a repair crew and vessel from entering the area and completing a subsea repair until late summer.

While conducting the assessment, Quintillion immediately began working with local internet service providers and community leaders to pursue a short-term restoration of critical services, while developing potential solutions for a permanent repair. Given the importance of high-speed internet service to North Slope and Northwest communities, as well as U.S. national defense, Quintillion is aggressively exploring options to expedite an alternative solution. This includes building a ‘land bridge’ or terrestrial route from Utqiaġvik to Deadhorse to create a self-healing network ring. The good news is that Quintillion had previously invested millions of dollars to acquire the cable needed for such a route and has this hardware on hand in Fairbanks.

However, a quicker fix via a land bridge will require significant assistance from the federal government. Quintillion and Alaskan stakeholders have long understood the need for a resilient and redundant system that can withstand acts of Mother Nature. This need is expressly why Quintillion began working with ICAS more than a year ago to obtain a FEMA BRIC grant, a program designed to help Tribes and communities ‘reduce their hazard risk.’ ICAS filed our joint application last March, and despite positive signals from FEMA, valuable time has been lost as we await an official decision and notification.

Working closely with our community partners and the Alaska Congressional Delegation, Quintillion will continue to press for urgent support from FEMA and pursue the necessary Bureau of Land Management permits needed for construction of this new terrestrial route. To expedite a repair, we will need the full force and support of the incoming Trump Administration, including cutting federal government red tape and eliminating bureaucratic obstacles that will stand between Quintillion and system restoration. The time for federal agencies to act is now.”

It appears an ice scour severed the subsea fiber cable approximately 32-37 miles north of Oliktok Point. Imaging and analysis by scientific, academic, and technical experts show evidence of fast ice and sea ice activity in the fault area, which likely led to the cable’s damage.

Quintillion is implementing a multi-phased approach to restore services:

Long-Term: We are mobilizing repair and installation vessels to fix the subsea cable.

Immediate Action: We are collaborating with local partners to establish a hybrid solution by linking our fiber between Nome and Utqiagvik with a satellite ground station in Nome. This solution aims to restore a significant level of critical services within several weeks.

Short-Term: We urge the federal government to expedite a Federal Emergency Management Agency (FEMA) grant to fund an interconnected terrestrial route from Utqiagvik to Deadhorse. This route would bypass the fault area and could be completed this spring if permitting challenges are addressed.

While the hybrid solution is expected to restore significant service levels in the coming weeks, full restoration of the subsea cable will take longer. Quintillion’s timeline depends on factors such as the success of the FEMA grant process, federal permitting approvals, and winter repair conditions. Our goal is to complete the terrestrial route by spring and finalize subsea repairs as soon as feasible.

Quintillion is working with experts to better understand changing ice conditions in the Beaufort Sea. This data will inform our long-term strategy for building resilient infrastructure to mitigate the risk of future outages.

The restoration efforts face several challenges:

• Permitting Delays: Federal government rules and regulations have slowed the permitting process for the terrestrial route.
• Climate and Ice Conditions: Unpredictable ice behavior in the Beaufort Sea adds complexity to the subsea repair process.
• FEMA Grant Process: The grant application, initiated in July 2023, is still in the pre-award phase. Quintillion is advocating for swift approval to accelerate restoration timelines.