Hawaiian Telcom

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Hawaiian Telcom, Inc.
Type Public
Traded as NASDAQHCOM
Industry Communications Services
Founded 1883
Headquarters Honolulu, HI, USA
Key people Eric Yeaman, CEO
Products Broadband Internet services, Local wireline services, Television
Parent GTE (1967-2000)
Verizon (2000-2005)
The Carlyle Group (2005-2010)
Hawaiian Telcom Holdco (2010-present)
Website www.hawaiiantel.com

Hawaiian Telcom, Inc., is the incumbent local exchange carrier (ILEC) or dominant local telephone company, serving the state of Hawaii. It is owned by Hawaiian Telcom Holdco, Inc., which was formed in 2005 by The Carlyle Group, following its purchase of the Hawaiian assets of Verizon Communications. They had been known as Verizon Hawaii, Inc., and previously as GTE Hawaiian Telephone Company, Inc., Hawaiian Telephone Company and Mutual Telephone Company.[1]

Original company stock certificate

Hawaiian Telcom provides a wide range of consumer, business and wholesale communications and technology services. Service offerings include local phone, long distance, internet services (dial-up, DSL and Fiber Optics), and television, service,[2] along with wireless service as a mobile virtual network operator using leased capacity provided by Sprint and Verizon Wireless's CDMA networks on the consumer side. Hawaii operations of Verizon Wireless were not included in the 2004 sale to The Carlyle Group, and Verizon Wireless continues to operate in Hawaii as before the divestiture. Among the company's business offerings are a full range of Internet Protocol services (IP), including ethernet, high-bandwidth data services, managed services and cloud-based services.[3]

Carlyle's purchase of Verizon Hawaii was quite controversial with the public and competitive local exchange carriers, Time Warner Telecom and Pacific LightNet, who had doubts about the Carlyle's lack of experience operating telecommunication businesses, and their intentions as to raising rates, upgrading the network with optical fiber as former-parent Verizon was doing on the mainland, and possible resale of the business in just a few years, all seen as being detrimental to the public interest.[4]

Upon disconnecting from Verizon's back-office systems in April 2005, the company experienced difficulties transitioning to its own systems. Issues ranged from extremely long hold times to speak to representatives, to duplicate and delayed bills. In February 2007, the company announced that it had reached a settlement with its original systems consultant, BearingPoint, and had hired a new contractor, Accenture, to complete the transition to the new systems.[5]

Hawaiian Telcom announced on February 4, 2008, that it was replacing CEO Michael Ruley with turnaround expert Stephen F. Cooper, chairman of Kroll Zolfo Cooper. Cooper's previous management engagements include Enron and Krispy Kreme.[6]

On May 8, 2008, the company named Eric Yeaman as its new CEO, succeeding interim CEO Cooper. Yeaman previously served as Chief Operating Officer of Hawaiian Electric Company, the electric utility serving the island of Oahu. The company also announced that Walter Dods, former president of First Hawaiian Bank and one of several local investors in Hawaiian Telcom, was assuming the role of Chairman of the Board.[7]

On December 1, 2008, the company filed for Chapter 11 bankruptcy after missing an interest payment on its debt.[8] The company's plan to reduce its debt by more than $800 million was approved by Judge Lloyd King of the U.S. Bankruptcy Court on November 13, 2009. The plan required approval by the Hawaii Public Utilities Commission.[9] After leaving bankruptcy, the company's stock became publicly traded in 2010, moving to NASDAQ in 2011.[10][11]

On June 24, 2011, The State of Hawaii Department of Commerce and Consumer Affairs issued a 15-year cable franchise license to Hawaiian Telcom, thus ending Oceanic Time Warner's 35-year monopoly as the state's sole cable TV provider.[12] Hawaiian Telcom launched the service on July 1, 2011 after a year of testing in the Honolulu area, with islandwide service to expand in 2012.[13]

References[edit]

  1. ^ Debbie Sokei and Sean Hao (2004-05-22). "Local Verizon workers optimistic". The Honolulu Advertiser. Retrieved 11 December 2011. 
  2. ^ "Hawaiian Telcom gets a license for cable TV"
  3. ^ Hawaii Business Magazine - Jan. 2012 CEO of the Year, http://www.hawaiibusiness.com/Hawaii-Business/January-2012/Hawaii-Business-CEO-of-the-Year-Eric-Yeaman/index.php?cparticle=3&siarticle=2#artanc
  4. ^ Martin, Dan (2004-10-06). "Union supports Verizon suitor". Honolulu Star-Bulletin. Retrieved 2004-10-10. 
  5. ^ Wu, Nina (2007-02-09). "Hawaiian Telcom hires new help". Honolulu Star-Bulletin. Retrieved 2007-02-09. 
  6. ^ Consillio, Kristen (2008-02-05). "Hawaiian Telcom ousts CEO". Honolulu Star-Bulletin. Retrieved 2008-02-05. 
  7. ^ "HECO executive named president of Hawaiian Telcom". Pacific Business News. 2008-05-08. Retrieved 2008-05-08. 
  8. ^ "Carlyle's Hawaiian Telecom Bet Goes Belly Up". Washington Post. 2008-12-01. Retrieved 2008-12-02. 
  9. ^ "Hawaiian Telcom's $460M reorganization gets OK". Honolulu Advertiser. 2009-11-14. Retrieved 2009-11-20. 
  10. ^ Sophie Cocke (December 27, 2010). "Hawaiian Telcom starts trading stock". Retrieved December 11, 2011. 
  11. ^ "Hawaiian Telcom Common Stock Begins Trading on NASDAQ under Ticker Symbol "HCOM"" (Press release). 2011-07-05. Retrieved 2011-12-12. 
  12. ^ "Hawaiian Telcom gets a license for cable TV" from Honolulu Star-Advertiser (June 25, 2011)
  13. ^ "Hawaiian Telcom TV kicks off around Oahu" from Honolulu Star-Advertiser (July 2, 2011)