Posted on: Thursday, May 19, 2005

FCC homestead ruling favors phone provider

By Sean Hao
Advertiser Staff Writer

The Federal Communications Commission has ruled that Sandwich Isles Communications Inc. can continue to receive federal funds to provide phone service on Hawaiian Homes land.

Honolulu-based Sandwich Isles has spent $160 million of taxpayer money on a telephone network that serves 1,300 customers on O'ahu, the Big Island, Maui and Moloka'i. However, the company's ability to continue building a network in mostly rural areas was jeopardized late last year when the FCC said it needed to go through an application process to continue drawing federal funds.

The FCC's order, which was released Monday, allows Sandwich Isles to continue operations as usual, said Gil Tam, the company's vice president.

In 1998, the FCC said Sandwich Isles didn't have to go through an application process to get money from the Universal Service Fund, which is financed by a fee on telephone bills. GTE Hawaiian Tel, which now is Hawaiian Telcom, disputed the decision. It took the FCC six years to decide whether to investigate.

Ann Nishida, a spokeswoman for Hawaiian Telcom, said the company had no comment on whether it would appeal the FCC order.