Two telecom companies are urging government regulators to block or set conditions on the acquisition of GCI by media conglomerate Liberty Interactive, arguing the deal will harm consumers.

Quintillion and ACS compete with GCI, Alaska's largest telecom provider. They also have little choice but to pay for use of GCI's extensive network in markets across the state.

ACS and other smaller companies have complained to the Federal Communications Commission in the past about GCI's high wholesale rates and say a merger with a large, powerful telecom based outside Alaska will only encourage the continuance of GCI's pricing practices.

Quintillion is emerging as a new rival to GCI with its construction of a fiber-optic network through northern and Interior Alaska. ACS competes with GCI in and around Alaska's major cities and has increasingly focused on business services, leaving GCI the lion's share of the consumer broadband market.

In letters sent to the FCC in June, Quintillion, owned by billionaire businessman Leonard Blavatnik, took a swipe at Liberty CEO John Malone, also a billionaire, in arguing that the commission should set special conditions on the acquisition.

"Quintillion understands that LIC and Mr. Malone, have a lengthy history of notoriously aggressive and bottom-line focused dealings in U.S. and international markets," the letter said.

ACS wrote that the new company "will have greater incentives and ability to exercise market power to deprive wholesale customers (who are competitors) as well as retail customers of affordable access to GCI-Liberty network facilities and services."

The two companies focused their objections on GCI's receipt of millions of dollars in federal funding each year, arguing that the FCC should approve the deal only if GCI assures that any public funds it receives be used in Alaska, that the company be made to offer "reasonable" pricing on its networks to other telecoms and to consumers.

Absent these conditions, the companies argued, the FCC should not allow the deal to proceed.

Alaska lawmakers, including Rep. Zach Fansler, D-Bethel; Sen. Tom Begich, D-Anchorage; and Rep. David Guttenberg, D-Fairbanks, also submitted comments suggesting that the commission review GCI's use of federal funds in light of the planned acquisition.

Liberty's plan to acquire GCI for $1.12 billion was announced in April. The companies expect the deal to become final in early 2018.

Barry Sine, director of equity research at U.S. investment bank Drexel Hamilton, said he did not believe the objections mounted by GCI's competitors would have any effect on the acquisition.

"In these transactions you throw whatever you can up against the wall. And maybe they do cause a few problems for GCI where the deal is delayed or they spend more on lawyers than they would have. That's all part of the game," said Sine, who tracks developments in Alaska's telecom industry. "Will this be an impediment to the deal closing? No."

GCI spokeswoman Heather Handyside said the company would not comment beyond what it had written in its own letter filed with the commission.