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The Honolulu Advertiser
Posted on: Thursday, January 29, 2009

New state panel would oversee broadband

By Rick Daysog
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Online shopping could be easier and faster under a proposal by Gov. Linda Lingle to create a state agency to oversee cable operators and telecommunications companies.

ADVERTISER LIBRARY PHOTO | 2007

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Gov. Linda Lingle wants to create a new state commission that will regulate Hawai'i's telecommunications companies and cable operators as part of an effort to boost Hawai'i's broadband infrastructure.

Hawai'i is 49th among U.S. states when it comes to broadband speed, according to a recent report. Creating a Hawai'i Communications Commission will help make it easier to improve the state's broadband infrastructure and increase competition, Lingle said yesterday.

"We have to be a world leader. We can't be playing catch-up or hope we're in the middle of the pack," Lingle said.

"If we expect to truly make a transition from a land development economy to an innovation-based economy, this is essential."

Cable companies currently are regulated by the cable television television division within the state Department of Commerce and Consumer Affairs, while telecommunications companies such as Hawaiian Telcom Inc. are overseen by the state Public Utilities Commission, which is made up of three voting commissioners.

Under the Lingle administration's bill, a state agency will be headed by a single commissioner who will oversee the regulatory process for all providers of broadband, video programming and telecommunications services.

The streamlined regulatory process will make it easier for companies to develop the state's broadband infrastructure and provide faster service, more accessibility and usage for local consumers, proponents said.

The goal of the legislation is to provide broadband communications to all residents by 2012 at speeds and prices that are comparable to those offered in leading countries such as Japan, Sweden and Singapore.

The bill also aims to make broadband communications available at affordable costs to low-income residents.

Cable operators would move under the oversight of the commission once the bill is passed. Regulation of telecommunications providers will move to the commission a year later in light of the ongoing Hawaiian Telcom bankruptcy.

Jeff Piontek, director of the Hawai'i Technology Academy, said an improved broadband infrastructure will boost educational and distance learning opportunities for Hawai'i students.

"We have the moral responsibility to stop educating the Jetsons' children with the Flintstones'schools," he said.

State Sen. Carol Fukunaga, D-11th (Makiki, Pawa'a), said the measure fits in with President Obama's vision of giving school children and communities nationwide "equal access to high-speed, high-quality broadband."

George Waialeale, a retired Hawaiian Telcom employee, criticized the measure as anti-consumer.

Waialeale, former business manager the International Brotherhood of Electrical Workers Local 1357 which represents the phone company workers, said that instead of three PUC commissioners, rates will be determined by a single individual who has the potentially conflicting role of looking out for the interest of consumers while also attracting new providers to the state.

"Instead of fostering competition, it will create an 800-pound gorilla," he said.

Larry Reifurth, the DCCA's director, said he doesn't see a conflict because the commission will only regulate cable companies and telecom providers but will not serve as an advocate for providers.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.