On This Nearly Deserted Alaska Island, You Pay to Keep Hundreds of Empty Buildings Wired for Internet

In the remote expanse of the Bering Sea, over 1,200 miles from Anchorage, Alaska, lies Adak, a nearly deserted island once central to U.S. military operations during the Cold War. Today, the island's population is estimated to be around 77 by state officials, though locals suggest it might be fewer than 30. Despite this sparse population, the island continues to receive substantial federal funding through the Universal Service Fund, which subsidizes internet services for rural and underserved areas. However, the funds appear to be going toward maintaining internet infrastructure in hundreds of empty buildings, including a former Navy housing unit that has been abandoned for years. The situation came to light following investigative reporting by the Anchorage Daily News and ProPublica, which revealed how the Universal Service Fund, managed by the Federal Communications Commission, has been funneling millions of dollars annually to telecommunications providers, even when the services they offer are unused or unnecessary. In Adak, the local provider, Adak Eagle, receives over $340,000 each year to maintain internet connectivity in structures that have long been vacant. This includes the abandoned Navy base, where a fiber-optic cable runs from the exterior wall into the ground, despite the absence of any residents or users. The Universal Service Fund, designed to ensure access to affordable communication services for all Americans, has faced scrutiny over its oversight mechanisms. Reports indicate that the FCC continues to allocate funds to telecom companies regardless of their compliance history. For instance, a Fairbanks-based firm continued receiving payments while its owner was incarcerated for tax evasion. Similarly, GCI, Alaska’s largest telecom, received ongoing subsidies even after settling allegations of fraud related to the fund, although the settlement did not confirm either guilt or innocence. Adak exemplifies the inefficiencies within the system. The island, once bustling with military activity, saw its population decline sharply after the closure of the naval base in 1997. Most homes now sit abandoned, their interiors untouched by time and neglect. A recent visit to the island confirmed that none of the residents currently utilize the subsidized internet service. Instead, they rely on Starlink, a satellite-based service launched by Elon Musk, which offers significantly faster speeds and lower latency compared to the outdated offerings of Adak Eagle. Residents pay between $90 and $140 monthly for Starlink, whereas Adak Eagle previously charged hundreds of dollars per month, in addition to receiving federal subsidies. The origins of Adak Eagle trace back to the early 2000s, when the company was established using FCC subsidies and federal loans aimed at upgrading traditional telephone lines to fiber-optic networks capable of supporting both voice and internet services. By 2011, the company had secured $2.68 million annually from the Universal Service Fund. However, a 2013 federal review uncovered discrepancies in how the company used these funds, noting that company president Larry Mayes had allocated resources to non-essential assets such as a fleet of vehicles and a fishing boat, which were deemed irrelevant to the core operations of the telecommunications business. Despite these findings, the flow of subsidies has not ceased. Current reports indicate that Adak Eagle still operates under the same framework, continuing to collect funds for services that are largely unutilized. The company’s website currently lists internet plans ranging from $99 to $550 per month, suggesting that the cost structure has shifted dramatically since the initial implementation of the service. The implications of this misallocation extend beyond Adak. Across Alaska and other remote regions, similar patterns have emerged, raising concerns about the effectiveness of the Universal Service Fund in achieving its stated goals. As the debate over the management and oversight of these funds intensifies, the case of Adak stands as a stark example of how public resources can be directed toward obsolete infrastructure, leaving taxpayers to bear the financial burden of a system that appears increasingly disconnected from the needs of its intended beneficiaries.