Local phone service market under review

By Deborah Adamson
Advertiser Staff Writer

The Hawai'i Public Utilities Commission ordered an examination of whether the local telecommunications market continues to adhere to federal rules that promote competition.

"We're looking at whether or not there needs to be more access by competitors," Kris Nakagawa, chief legal counsel, said yesterday.

Every three years, the Federal Communications Commission reviews the implementation of the Telecommunications Act of 1996 nationwide. This is the first year the obligation was delegated to the states. Hawai'i officials have up to 90 days to complete its proceeding and report findings to the FCC.

The 1996 act seeks to promote competition in phone service. By law, incumbent phone companies such as Verizon Hawai'i have to lease part of their networks to competitors so callers can have a choice in carriers.

The long-distance phone market was the first to fall to competition. It was followed by interisland toll calls, which are now served by firms that include AT&T and Oceanic Communications. The last frontier is the local phone service within each island where Verizon Hawai'i still dominates.

Nakagawa said one thing the commission will determine is whether changes need to be made to make sure competitors are not constrained by Verizon's dominance in local calls.

At present, Verizon's rivals have regulatory approval to provide local phone service to residential customers in Hawai'i. They just haven't done so, Nakagawa said.

However, some have been providing local, toll calls and long-distance service to the more lucrative business market, he added.

Asked for comment, Verizon Hawai'i spokeswoman Ann Nishida said: "We're reviewing the PUC's order."

Reach Deborah Adamson at 525-8088 or dadamson@honoluluadvertiser.com.