Posted on: Tuesday, October 5, 2004
Ring, ring ... HawTel? Verizon? Uh, new name
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.
What: Public hearing on Carlyle's offer to buy Verizon
When: Today at 6 p.m.
Where: State Capitol auditorium, basement level, 415 S. Beretania St. The proposed name and a new logo depicting the Hawaiian Islands in a chain of pastel bubbles are 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, an investment firm with $18 billion under management.
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, as well as introduce new services without sacrificing quality and charging more.
The PUC and the U.S. Department of Justice must approve the deal before it can proceed. Carlyle hopes to close the sale in March.
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.
Among the local investors in Hawaiian Telcom is Walter Dods, chairman of First Hawaiian Bank. He'll lead a group of local investors who are expected to put about $40 million in the new company, according to Carlyle.
Further details about the deal, including the identities of a key Hawaiian Telcom executive and board member, will be provided today, according to Carlyle.
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 today. Among the issues Cole said will be addressed are whether Carlyle can provide reliable service to consumers and ensuring a smooth transition between the companies.
"These hearings are especially valuable to us in assessing and understanding the needs and concerns of consumers throughout Hawai'i," Cole said.
For information on Neighbor Island hearings: Check the PUC's Web site at www.hawaii.gov/budget/puc/telecom or call them at (808) 586-2020. Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.
Washington, D.C.-based The Carlyle Group, which plans to buy the business for $1.65 billion, announced yesterday that the new company would be named Hawaiian Telcom. The name and a new logo were rolled out on the eve of public hearings being held by the state Public Utilities Commission to determine whether the sale is in the best interest of Hawai'i residents.
Hearing today
