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The Honolulu Advertiser

Posted at 11:38 a.m., Monday, October 4, 2004

Verizon to be Hawaiian Telcom

By Sean Hao
Advertiser Staff Writer

For longtime Hawai'i residents, a proposed new name for Verizon Hawaii's telephone business may have a familiar ring.

Washington, D.C.-based The Carlyle Group, which plans to buy the business for $1.65 billion, this morning announced the new company would be named Hawaiian Telcom. The name is meant to be a modern twist on Hawaiian Tel, which was the shortened name many residents used for Hawaiian Telephone Co. before the change to Verizon Hawaii in 2000.

"The name and logo reflect The Carlyle Group's commitment to create a local, stand-alone company by returning key functional areas back to the Islands," said William Kennard, managing director for Carlyle.

Carlyle's rollout of the name and a new logo depicting the Hawaiian Islands in a chain of pastel bubbles comes one day before the Public Utilities Commission is set to begin public hearings on all islands about the proposed sale. The PUC must approve the deal before it can proceed. The U.S. Department of Justice also is reviewing the deal.

As part of its plans, Carlyle has said it won't raise telephone rates for 10 years and will increase local employment as operations now done by Verizon on the Mainland — such as information technology, management, legal and human resources — are brought to Hawai'i. Verizon Hawaii has about 1,700 employees.

However, Verizon competitors and others have questioned whether the investment group can accomplish those goals without sacrificing quality and cost of services to its customers.

Verizon is Hawai'i's main provider of telephone services. Verizon was formed in 2000 when GTE merged with New York-based Bell Atlantic. Connecticut-based GTE Corp. acquired Hawaiian Telephone in 1967.

Last week, state consumer advocate John Cole urged the public to express their views concerning the proposed sale of Verizon Hawaii at the PUC hearings beginning tomorrow.

The O'ahu hearing on the deal is scheduled for 6 p.m. tomorrow in the State Capitol auditorium, basement level, 415 S. Beretania St.

"These hearings are especially valuable to us in assessing and understanding the needs and concerns of consumers throughout Hawai'i," Cole said.

Among the issues Cole said will be addressed are whether Carlyle can provide reliable service to consumers and that there be a smooth transition between the companies.

Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.