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The Honolulu Advertiser
Posted on: Wednesday, April 4, 2007

HawTel postpones cable TV to 2008

Advertiser Staff

Hawaiian Telcom said it has postponed the expected launch of its television service until the first half of next year. The company earlier said the service might be offered in the second half of this year.

The project, which would deliver television programming over existing phone lines, has been delayed several times because of difficulties experienced by Hawaiian Telcom with back-office systems and customer service issues. Trials of the TV service are expected to begin later this year.

"We remain committed to delivering a truly revolutionary video offering to the Hawai'i marketplace," Mike Ruley, Hawaiian Telcom's chief executive, said in a conference call. "It was prudent to delay rollout until ... we could ensure a reliable customer experience."

Hawai'i's major phone company still needs to obtain a cable franchise license from the state before offering the service. That would give Hawaiian Telcom the right to offer video service in Honolulu over its phone lines in competition with Time Warner Oceanic Cable. Hawaiian Telcom, which is facing growing competition for phone customers, hopes that video will help it retain and add customers.

Hawaiian Telcom, which has 1,800 employees, has not revealed the price of its proposed television service.

The new service would use Internet technology to send video to customers, who would receive the TV service via a special set-top box.