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The Honolulu Advertiser
Posted on: Saturday, March 22, 2008

Directory assistance call center to be closed or sold

By Greg Wiles
Advertiser Staff Writer

Metro One Telecommunications Inc. said it will be closing or selling its Honolulu call center that provides directory assistance and other services for Hawaiian Telcom and Mobi PCS. The call center employs about 50 workers.

The Portland, Ore.-based company said it will exit its wholesale directory assistance business by May 5, affecting its call centers in Honolulu, Minneapolis, Charlotte, N.C., and Orlando, Fla.

Ron Arp, a spokesman for Metro One, said the Honolulu center likely will be closed but that the company is prepared to assist with a transition to a new owner should a buyer appear. He said Hawaiian Telcom and Mobi PCS are the two largest customers of the Hawai'i operation.

Metro One said it was exiting the business as part of a restructuring plan designed to improve its finances. The company has lost money for the past 18 quarters, and in January named a new chief executive officer to help aid growth and develop new business opportunities.

The company opened an office here in 1999, and over the past two years has gained contracts with local wireless carrier Mobi PCS and Hawaiian Telcom.

The Mobi PCS agreement, announced in June 2006, called for a multi-year relationship during which time Metro One's call center would provide directory assistance and other information services.

"We at Mobi PCS had heard they were having some financial difficulties," said spokeswoman Deborah Sharkey, noting the wireless carrier will have 411 services in place no matter what happens come May.

"We had already been looking at alternative solutions."

Metro One announced it was providing land line and wireless directory services for Hawaiian Telcom last year, shortly after the Honolulu-based telephone company said it would be eliminating three dozen operator positions and outsourcing the work. Hawaiian Telcom said it was taking the step to reduce costs and invest in other areas of the company.

At the time, Hawaiian Telcom said the switchover to Metro One would be transparent and that additional services would be available through the contractor, such as driving instructions, sports scores and reverse directory assistance.

Yesterday, Hawaiian Telcom said it had not been formally notified by Metro One of the closing or sale of the Honolulu center.

Hawaiian Telcom spokeswoman Ann Nishida said as such it would be premature to comment on what would happen.

Metro One said it was unable to attract enough customers who would pay for the costs to provide its services and a return for shareholders.

"We regret the impact to our employees and their families but must change our business model to pursue segments in information services where we can compete effectively going forward," James Hensel, chief executive officer, said in a press statement.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.