Posted on: Saturday, June 18, 2005

Phone service decision fought

By Sean Hao
Advertiser Staff Writer

Hawaiian Telcom this week asked the Federal Communications Commission to reverse a decision allowing Sandwich Isles Communications Inc. to continue to receive federal money to provide phone service on Hawaiian Home Lands.

Sandwich Isles Communications Inc. is building a telephone network to some of the least-served areas of the state with money from the Universal Service Fund. The fund was created as a means of financing phone service in high-cost rural areas that have small numbers of customers. Money in the fund comes from fees paid by phone customers nationwide.

Late last year the FCC ordered Sandwich Isles to go through an application process to get money from the fund, and in May the application was granted.

Hawaiian Telcom said it also wants the FCC to clarify Hawaiian Telcom's and Sandwich Isles' rights and obligations regarding service to Hawaiian Home Lands.

"The order allowing continued extensive and unprecedented federal funding for Sandwich Isles to build new communications facilities to serve only the Hawaiian Home Lands was unclear and, without immediate clarification, would detrimentally impact Hawaiian Telcom's ability to use its existing facilities to serve its customers, including business customers on urban commercially-zoned property owned by Hawaiian Home Lands," Hawaiian Telcom said in a written statement.

Gil Tam, Sandwich Isles vice president, said he had no comment on Hawaiian Telcom's request.

Honolulu-based Sandwich Isles has spent $160 million on a telephone network that serves 1,300 customers on O'ahu, the Big Island, Maui and Moloka'i.

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