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Verizon Hawaii Sold
Bought by Carlyle Group for $1.65 billion
(old news - 09:27AM Saturday May 22 2004)
tags: business
Verizon Communications has announced they have sold their Hawaii wireline business to the Carlyle Group for $1.65 billion dollars. Verizon operated some 707,000 landlines in the state, serviced by roughly 1,700 employees; the majority of reports not giving DSL usage estimates. The Hawaii branch of Verizon wireless, which has seen explosive growth while landline business suffers, was not part of the sale. Verizon has been hinting they are considering selling off many of their less profitable regions, which includes the majority of New York State.

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Forums » Verizon Hawaii Sold
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Mandarin7
New Verizon Online Customer

join:2004-04-01
Baltimore, MD

Hawii DSL

I wonder how many people will lose their dsl due to this. Won't the Hawiians be in for a susprise.
Gilitar

join:2000-11-20
Mobile, AL

1 edit

Re: Hawii DSL

Maybe they realize that the future of voice and data services is wireless. Selling off systems such as this will ultimately allow them more money to invest in Verizon Wireless.
monsternet

join:2004-05-21
Fremont, OH

Many people won't lose they're DSL if they have a different provider other than Verizon Online/MSN.

my company sells services in many VZ areas around the country. and actually at a better rate too. But we're waiting on to find out if the DSLAMS will stay or not. Most likely they will stay.

Voyager2K2

join:2001-10-04
Wayne, PA
·Verizon FIOS

Management Headache?

Carlyle Group has mentioned that the new phone company will be operated as a local company.
If the revenue numbers are accurate, phone, broadband,and yellow pages are very profitable.

All facets of Verizon seem to have undergone a centralization of services to reduce redundancies and subsequently costs. Verizon wireless closed a relatively large wireless office near the PA/DE boarder last year even though their wireless business seems to be doing well in the Mid-Atlantic region. That's how successful businesses are run.
Perhaps Hawaii's landline-based services presented too many unique situations and would better be served by a locally run company?

Granted it may be hot air but the Carlyle Group has promised to do nothing but improve the current offerings. It remains to be seen.
My only question might be if the same group has the funding available to fiance upgrades as needed. $1.65 billion is a pant-load of debt to try and work around.

I don't see many similarities between Hawaii and the Upper Tier of NY BTW

Karl Bode
News Guy
join:2000-03-02

Host:
Road Runner
PC gaming GAMES
PC gaming Tech

Re: Management Headache?

quote:
I don't see many similarities between Hawaii and the Upper Tier of NY BTW
I think the upstate sales talk is a simple threat designed to loosen regulation myself, but it is being considered for sale.....according to Verizon because the profit margins simply aren't there in many of those mid-sized cities.....

Just like in Hawaii, the population volume isn't great enough to Walmartize landlines....

Roundel
Blau Und Weiss
Premium
join:2002-03-24
Westport, CT
clubs:
·Optimum Online

Re: Management Headache?

said by Karl Bode See Profile:
quote:
I don't see many similarities between Hawaii and the Upper Tier of NY BTW
I think the upstate sales talk is a simple threat designed to loosen regulation myself, but it is being considered for sale.....according to Verizon because the profit margins simply aren't there in many of those mid-sized cities.....

Just like in Hawaii, the population volume isn't great enough to Walmartize landlines....

I know for sure that at Least Honolulu and the Island of Oahu is populace enough, Then again for a national company like Verizon, it may not be to be profitable.
--
ANYBODY EXCEPT BUSH/CHENEY 2004 I hope everybody learned their lesson.

Googled
Yay, I have FIOS

join:2001-08-13
Orchard Park, NY
·VoicePulse
·Verizon FIOS

said by Voyager2K2 See Profile:
I don't see many similarities between Hawaii and the Upper Tier of NY BTW
Never been to Hawaii, so I can't really say for sure. I can, however, say that Upstate NY is a very nice place to live.

Lake Erie keeps looking more and more like the blue waters of the tropics thanks to the zebra mussels. We'll also eventually have white sand beaches if their shells keep washing up on shore at the rate I've been seeing.

TrainBuff
The New Haven Railroad
Premium
join:2003-05-01
Buffalo, NY
clubs:
·Verizon FIOS
·RoadRunner Cable

Re: Management Headache?

Upstate new York is a nice place to live. But Hawaii doesn't get snow, ice, cold along with wind chills and anything else that goes along with Winter. But we do have nice Summers through.
And Hawaii is beautiful.
And back to Verizon. With them getting fined by the PSC for failing to meet some quotas, I would not be surprised to see them pushing ahead to sell their upstate NY market.
--
Train Yourself To Relax...Ride The New Haven Railroad! The New York, New Haven & Hartford Railroad Co.:1872-1968

bloated

@globalpops.com

Re: Management Headache?

Hawaii does get snow, in fact we just got some week before last on Mauna Kea (which means white mountain). I don't mind seeing Verizon leaving as I have never got any service from that company. Up until a few years ago I had to tell them what number I was dialing from. I have only had a private line for a few years as well. What is DSL? Never heard of it. I have always wanted phone service. I was only worried that the local power company bought Verizon (HELCO, the power company from Hell!).

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

this is one time

a monopoly leaving was BAD news. Verizon actually worked there. Not too concerned about the DSL part, as cable was prevalant.

Konaguy
Live From Kailua-Kona, Hawaii
Premium
join:2000-10-21
Kailua Kona, HI
·Hawaiian Telcom


1 edit

Very Concerned

I live in Hawaii and recently got Verizon DSL after I dropped
Road Runner. I'm very concerned how this will effect my DSL
service personally. Plus I'm very skeptical about this purchase, as I go into more detail below with a letter to the editor I submitted to Honolulu Advertiser etc.

The long rumored purchase by The Carlyle Group of Verizon Hawaii was officially announced on Friday May 21, 2004.I strongly believe this potential purchase is not in the best interestfor the State of Hawaii. Even though The Carlyle Group has promised no layoffs, more local control of operations, more broadband access etc,
having a private equity company with limited telecom experience[You can see for yourself here »www.thecarlylegroup.com/eng/indu···494.htm] does not bode well for the future.
The reason why I feel this way is firstly that limited telecom experience [This is will be their first telephone company they'll own],secondly I really don't see a long term future with The Carlyle Group owning Verizon Hawaii. Since their primary focus to their investors,
I'm willing to bet if this purchase goes though, The Carlyle Group will just turn around and sell Verizon Hawaii's assets to someone else.
To me, I don't think the people of Hawaii should have to deal with disruptions like this to such a critical utility. Thus I stronglyurge the Hawaii Public Utility Commission to reject this purchase by
The Carlyle Group of Verizon Hawaii. If Verizon wants to sell its Hawaii operations, they should sell it to another telephone company,not to a private equity company out for a fast buck.
If you feel the same way I do, I urge you write to the Hawaii PUC and the Hawaii Consumer Advocate [ hawaii.puc@hawaii.gov and dca@dcca.hawaii.gov ]

k_o
Que Hora Es?
Premium
join:2002-12-05
Lakeport, CA
clubs:

Carlyle Group=Bush

FYI

»www.guardian.co.uk/wtccrash/stor···,00.html

»baltimorechronicle.com/media3_oct01.shtml

Talk about sinister connections.
:o:o:o

Konaguy
Live From Kailua-Kona, Hawaii
Premium
join:2000-10-21
Kailua Kona, HI

Re: Carlyle Group=Bush

Try doing a Google Search "Bin Laden + The Carlyle Group"
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Carlyle Group=Bush

sounds like Carlyle Group and Bin Laden and the US Government is some how linked all together. But thats what the results show. But everywhere you see Carlyle Group the White House is in page or Bush is.

Maybe Carlyle Group is a company backed by the world LOL

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

said by k_o See Profile:
Talk about sinister connections.
I knew it! Bush had it in for Jasmine Trias all along!
--
Keep America Strong! Bush/Cheney 2004

SterlingJ85
Obama 2008

join:2000-11-19
Millville, NJ
·PHONE POWER
·TowerStream


1 edit

;

Bush Sr. is a big time stake holder in the Carlyle Group.. and so is the Bin Laden family. I can't believe they even mentioned the fact it needed approval by the FCC.. Like George W. isn't gonna let it fly by without even opening the cover page of the request.
--
-Sterling
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: ;

anything will fly by Bush as long as its going to help him people don't understand that.
joshj

join:2001-10-30
Antelope, CA

Nothing will change

This transaction will not change DSL or local phone service in any meaningful way. Hawaii is actually a fairly hi-tech area when it comes to high speed Internet. Oceanic Cable has offered cable modem service for nearly ten years in virtually every location on the island of Oahu. The new owners certainly aren't going to do anything to negatively impact their market position.

They will come up with some catchy local-sounding company name but the day to day functions of the company won't change. If anything this is great news for Hawaii because many of the jobs GTE and Verizon sent to the mainland will have to come back.

Konaguy
Live From Kailua-Kona, Hawaii
Premium
join:2000-10-21
Kailua Kona, HI
·Hawaiian Telcom


1 edit

Re: Nothing will change

Actually Ocenic Time Warner Cable had cable modem service
for the general public on Oahu since 1997 and on the neighbor
islands starting in 2000. Oceanic Time Warner had limited
cable modem trials for HERN/Hawaii DOE starting early as 1994.

I unlike you have less rosy outlook on this purchase, especially since I'm a Verizon DSL customer.

1. TCG is in my opinion driven by the INVESTOR. Thus I strongly feel TCG is not right company for the long term
to own Verizon Hawaii. In my opinion they could easily turn
around and sell it again.The people of the State of Hawaii
don't deserve or need disruptions like this.

2. I'm concerned about how this will effect my DSL service.
Since VOL is out of the picture, this will probably mean
I'll have to change my e-mail address once again.Plus
I'm not sure if this new entity will even offer DSL directly.Currently going through a local ISP costs more
than going through Verizon. I do not want to be forced
to get Road Runner again.
mulvix

join:2003-11-19
Kirkland, WA

Re: Nothing will change

Hawaii Aaron I think you are way too pessimistic. The Carlyle Group are not asset strippers. There are plenty of next gen telco possibilities here. The fact that Verizon Wireless isn't part of the deal means the new company will be highly incented to put money into WiFi as well as future wireless technologies like WiMax and 4G cell phones. The geography and density of Hawaii (especially Oahu) makes it very favorable to wireless. Picture yourself using a roaming WiFi/cell phone. Or watching video on demand over VDSL or WiMax.

Strong competition from TW Cable for Internet with telephony coming means they are going to have to work for the business. Being able to make decisions based on the requirements of the local market, combined with non-public status should make them more nimble. Plus it's not fair to say they don't have telecom experience. Point man for this deal is William Kennard. He's a sharp guy and ex head of the FCC. Carlyle is a player, they'll have access to all the telecom talent they'll need.

If I were a customer (and I was a customer of both TW Cable and Verizon Hawaii) I'd want to roll the dice with Carlyle rather than hope that Verizon corporate back in NYC is going to look after my interests.

Konaguy
Live From Kailua-Kona, Hawaii
Premium
join:2000-10-21
Kailua Kona, HI
·Hawaiian Telcom

Re: Nothing will change

mulvix, if you could reassure me my DSL service with Verizon
Online won't be effected by this potential purchase then
I would be way less pessimistic.

"2. I'm concerned about how this will effect my DSL service.
Since VOL is out of the picture, this will probably mean
I'll have to change my e-mail address once again.Plus
I'm not sure if this new entity will even offer DSL directly.Currently going through a local ISP costs more
than going through Verizon. I do not want to be forced
to get Road Runner again."

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

said by Konaguy See Profile:
Since VOL is out of the picture, this will probably mean I'll have to change my e-mail address once again.
Slightly OT, but I was in the same boat as you were at one point. I decided I would change my email address one final time to one from a domain which I purchased. With my email address no longer tied to my ISP, I no longer need to worry about who buys out what, people will always be able to reach me and with web-based access, I will always be able to reach them.

With email being so important these days, it only makes sense that one should take the maintenance of such an asset this seriously.
--
Keep America Strong! Bush/Cheney 2004

Konaguy
Live From Kailua-Kona, Hawaii
Premium
join:2000-10-21
Kailua Kona, HI
·Hawaiian Telcom

Re: Nothing will change

said by pnh102 See Profile:

With email being so important these days, it only makes sense that one should take the maintenance of such an asset this seriously.

Well I'm already spending 30 bucks approximately for DSL.
I do not have that extra cash to by a domain address unfournately.
Forums » Verizon Hawaii Sold


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