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story category Hawaiian Telcom Faces Dark Future
A case of the little engine that couldn't
(old news - 01:15PM Saturday Feb 09 2008)
tags: business · telco · trouble · Hawaiian Telcom
Tipped by Konaguy See Profile
Hawaiian Telcom has held its own, posing a competitive threat to bigger companies like Time Warner in its little section of the world. However the company is struggling to remain in business with problems plaguing it from multiple angles. They have lost business back to the bigger competitors in recent months, due in large part to their “glitchy technology” which has caused problems in both service and billing. Changes in management and staff layoffs have reduced the outgoing cash flow for the company. Additionally, speed upgrades have convinced some customers to keep hanging on. But this may not be enough to save them before their equity firm decides that a sale is in order.

Related:
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  2. FairPoint Hopes To Delay $11 Million Debt Payment
  3. AT&T Offers $100,000 For Fiber Sabotage Info
  4. Did AT&T's Bad Week Kill Their iPhone Exclusivity Extension?
  5. Vermont Prepares For Fairpoint Bankruptcy
  6. Real Consumer Group Takes Aim At Fake Ones
  7. Fairpoint Accused Of Faking Network Readiness Test
  8. Unions Blame Verizon For Fairpoint Disaster
Forums » Hawaiian Telcom Faces Dark Future
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Post a:
brainlessdog

join:2005-11-30
Portsmouth, NH

Fairpoint Will Fold

Nice. Verizon sells Hawaii, new company in trouble. The exact same thing is going to happen to Maine, Vermont and New Hampshire when Verizon dumps us after promising upgrades for years. Verizon is an evil corporation.

NY Tel
Premium
join:2004-04-09
Smithtown, NY
·VOIPo

Re: Fairpoint Will Fold

said by brainlessdog See Profile :

Nice. Verizon sells Hawaii, new company in trouble. The exact same thing is going to happen to Maine, Vermont and New Hampshire when Verizon dumps us after promising upgrades for years. Verizon is an evil corporation.
Book-em, Dano
Sammer

join:2005-12-22
Canonsburg, PA

Re: Fairpoint Will Fold

Considering the Carlyle Group is much better able to take such risks than Fairpoint, you think so?

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
its actually Danno.

NY Tel
Premium
join:2004-04-09
Smithtown, NY
·VOIPo

Re: Fairpoint Will Fold

said by inteller See Profile :

its actually Danno.
Well Book-em either way....lol
soothsayer15

join:2002-03-01
Irving, TX

said by brainlessdog See Profile :

Nice. Verizon sells Hawaii, new company in trouble. The exact same thing is going to happen to Maine, Vermont and New Hampshire when Verizon dumps us after promising upgrades for years. Verizon is an evil corporation.
From the article:

quote:
The company lost $320 million in its first two years of operation and the 2007 numbers, which haven't yet been released, are expected to show more losses. With $1 billion in debt, Hawaiian Telcom doesn't have a limitless amount of money to throw at new managers and old I.T. problems.
You're right, Verizon is evil for not wanting to lose money. Hey guess what, when companies lose money, people lose their jobs and companies get sued. Look at Comcast.

You're mad because you most likely won't be getting FTTH now. You guys that live in rural areas need to be realistic. That's part of the trade off in most cases. Broadband is nice to have, but it isn't a right.
brainlessdog

join:2005-11-30
Portsmouth, NH

Re: Fairpoint Will Fold

Take a geography lesson. The majority of New Hampshire is not rural. I already have FiOS. The point is that we are being sold to a terrible company. We as consumers, have paid millions to Verizon, we expect some investment in our state. Verizon will take the money from the sale to build broadband for other areas they serve. Verizon is dumping us to expand broadband for others. I just want the same. Fairpoint sucks and they have big plans for DSL. Get real. The whole deal is a scam for Verizon to make billions!
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:
·Comcast

Re: Fairpoint Will Fold

Hey I want to introduce you to my friend. His name is real life , he can some times be a bitch and some times be a real nice guy.

Verizon is in business to make money. They owe you nothing , they provided you a service , and you used a service. Really that simple. They owe you nothing , you owe them nothing.

You just want the same ? You already have fios. You want Verizon to keep servicing you because you want a service ? You want to pay 4600 for your service ? I didn't think so. They are selling it because it's not profitable. they have to raise rates, and they can't because they are regulated and people will cry and gripe.

So yeah I see it as fair. They want to sell the less profitable markets to concentrate on profitable areas. They are after all a business. So unless you want to pay through the roof rates ( my bet is no , and if they did you would cry about even that ) then take it like a man and realize life isn't fair. Or move to a area where verizon is servicing or getting ready to service.

Lifes a bitch at times. And is usually never fair.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
brainlessdog

join:2005-11-30
Portsmouth, NH

Re: Fairpoint Will Fold

Get your facts straight. I do not live in the sticks. New Hampshire is profitable for Verizon, that's why they started running FiOS in New Hampshire to begin with. Verizon is allowed to do business in each state, by each state. They are allowed to make money as long as they serve the public good. Allowing them to leave after they made promises of building a fiber network to all is not in the public good. Fiber is the future. Verizon has made millions and received numerous tax breaks from our state. Verizon has an obligation to serve the public. I hear that Massachusetts is next on the chopping block for Verizon. I hope you like having the choice of one company.
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:
·Comcast

Re: Fairpoint Will Fold

If it was profitable Verizon wouldn't be looking to sell. They ran fiber in NH because the area had become a loss as far as costs of maintaining. Yes I know some of the folks who are responsible for your area.

They made no promises of building fiber networks to your home. You really are a fool to think any company will promise you anything , except a service for your money.

BTW I wouldn't mind if they sold mass. I know they won't because we are a cash cow. Especially the closer to Boston we get. And also my area is only serviced by comcast for broadband.

Build a bridge and get over it. Move if you want to keep fios that bad. As for me I got other things to do, like spend time with my wife and family , then to cry about anything a company is doing.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
brainlessdog

join:2005-11-30
Portsmouth, NH

Re: Fairpoint Will Fold

said by BosstonesOwn See Profile :

Yes I know some of the folks who are responsible for your area.

As for me I got other things to do, like spend time with my wife and family ,

Really? You know people? Name one liar. You like to spend so much time with the wife and kids that's why you're cruising the internet. Hypocrite.
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:
·Comcast

Re: Fairpoint Will Fold

said by brainlessdog See Profile :

said by BosstonesOwn See Profile :

Yes I know some of the folks who are responsible for your area.

As for me I got other things to do, like spend time with my wife and family ,

Really? You know people? Name one liar. You like to spend so much time with the wife and kids that's why you're cruising the internet. Hypocrite.
First off I surf from work. Believe it or not some of us have lots of free time.

Oh and I have worked with Verizon top level execs and top level engineers on multiple occasions. Verizon runs Sun equipment , and if you knew anything except how to bash folks , you would have at least looked up some of my posts and found out I am a very highly qualified Sun equipment engineer. But hey ya know , I wouldn't expect some one like yourself to understand.

I still work with Verizon and one of my conversations with the lead engineers is always when am I getting Fios. So I don't have to remote in from work. Handling gigs of logs over a 6 meg cable connection is hard. But I know you wouldn't understand that.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
rahvin112

join:2002-05-24
Sandy, UT

Verizon has had and currently still has a monopoly. The point of the universal service fund everyone pays into is to cover the losses on the rural areas the phone company sustains. Yet you elitists think that because someone is living in a rural area they aren't allowed to have telephone service or the hope of system upgrades.

The fact is the baby-bells rode the monopoly raking in their 20% profits while supporting the unprofitable rural areas year over year until deregulation happened and now they are handing off the rural lines that don't make money (and not cutting the universal service fees they charge their customers) to increase their profit base. It simply shouldn't be allowed, in fact congress should pass some new regulations that force the baby bells to reacquire at their expense any company they spin off that isn't successful. In fact IMO Verizon should lose all access to the Universal Service fund, or should have to pass all their revenue from those fees directly onto the rural phone providers they are spinning out of the company. It will be a better time in this country when we get an executive administration that's willing to hold these companies to their obligations, and rural phone service is one of their obligations, profitable or not they have to provide service to everyone that asks. If they don't want to run the lines themselves they should pass on the fees they collect that are meant to support those unprofitable areas.
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:
·Comcast

Re: Fairpoint Will Fold

Get real , the USF is a government fund that Verizon collects for them.

These companies are still regulated. You choose to live in the sticks. Your problem , the universal service fund is doing it's job. It's for phone service , not broadband. Phones are considered mandatory, while broadband is not.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"

phattieg

join:2001-04-29
Winter Park, FL
·Verizon Wireless B..
·Sprint Mobile Broa..

said by soothsayer15 See Profile
You're right, Verizon is evil for not wanting to lose money. Hey guess what, when companies lose money, people lose their jobs and companies get sued. Look at Comcast.
[/BQUOTE :


I might have missed something, but when did Comcast do layoffs, or lose a franchise agreement? I'm not sure what else you could have meant, I know for a fact that Comcast hasn't been laying off anybody, actually they keep hiring and hiring more and more people. Please, again, explain where these numbers are coming from. I'd like to look. So please to take offense to my questions..
--
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soothsayer15

join:2002-03-01
Irving, TX


2 edits

Re: Fairpoint Will Fold

said by phattieg See Profile :

said by soothsayer15 See Profile
You're right, Verizon is evil for not wanting to lose money. Hey guess what, when companies lose money, people lose their jobs and companies get sued. Look at Comcast.
[/BQUOTE :


I might have missed something, but when did Comcast do layoffs, or lose a franchise agreement? I'm not sure what else you could have meant, I know for a fact that Comcast hasn't been laying off anybody, actually they keep hiring and hiring more and more people. Please, again, explain where these numbers are coming from. I'd like to look. So please to take offense to my questions..
The numbers came from the article, which you might have found helpful to read before posting. I thought that placing a quote on it would make that obvious, I didn't realize I had to dumb it down, and I apologize for that. I never said anything about Comcast losing a franshise agreement, but it has already been posted on this site as a new items that Comcast is being sued by stockholders, not to mention thier stock was down last year.

Cabal
Premium
join:2007-01-21
Boston, MA
They teach economics in New Hampshire schools anymore?
BosstonesOwn

join:2002-12-15
Everett, MA
clubs:

Re: Fairpoint Will Fold

Apparently not , seams intelligent thought is being driven out of peoples minds as well.

Tychicus
Children are our most precious resource
Premium
join:2002-01-18
Helena, MT
clubs:

Hang in there

Verizon is too big already and have rotten customer service I hope the local folks hold out somehow
--
Team Discovery
Done_Posting
Shoot to kill
Premium
join:2003-08-22
Toledo, OH
·buckeye cable

Too bad

I was in Honolulu for vacation this past summer and toyed with the idea of submitting my resume to these guys while I was there (actually, I'd jump at just about any job opportunity if it meant moving to Hawaii full time -- what a beautiful place!). They had DSL advertisements all over and I saw several of their vans while I was out and about, so I'm kind of surprised to hear that they're in financial trouble.

- Tate

--
Happiness is an OC-48 in your basement...
Dolgan
Premium
join:2005-10-01
Sun Prairie, WI
·Verizon Online DSL

Re: Too bad

The majority of the OSP in Hawaii is Copper. It is very hard to maintain due the corrossive effects of seawater, and yearly tropical storms/monsoons that cause major floods. Furthermore, the costs of getting the supplies to maintain/grow that network are exponetially higher due to the fact that everything has to be shipped/flown into Hawaii. Verizon made an excellent business decision to sell off in light of the rising cost and fuel and shipping costs.
Done_Posting
Shoot to kill
Premium
join:2003-08-22
Toledo, OH
·buckeye cable

Re: Too bad

said by Dolgan See Profile :

Verizon made an excellent business decision to sell off in light of the rising cost and fuel and shipping costs.
Your whole post makes sense but I wanted to respond to this line in particular because it reminded me of something. When I went over there I had expected gas to be astronomically more expensive but I was shocked to find it was actually $.30 cheaper per gallon than here in Ohio. It turns out they get tankers full of crude and just refine it themselves right on the islands. Too bad they can't be more self sufficient with OSP. If you're correct about most of their plant being copper (and I have no reason to doubt you), I would think it'd be in someone's best interests to cover the islands with fiber! Perhaps a muni effort like the Utopia network could work in Hawaii?

- Tate

--
Happiness is an OC-48 in your basement...

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


3 edits

Re: Too bad

The problem with running FTTH here is the fact that environment makes that cost prohibitive. There is things from blue rock (which is very costly to drill), to native Hawaiian burials which makes FTTH difficult here.

But there is exceptions. Sandwich Isles Communications received 400 million in USDA RUS loans (to be repaid by USF) to build a fiber-optic network to service only DHHL lands. They are already offering high speed DSL service on these homestead lands.

»www.westhawaiitoday.com/articles···al06.txt
»www.hawaiibusiness.com/Hawaii-Bu···lectric/
»the.honoluluadvertiser.com/artic···07a.html
Done_Posting
Shoot to kill
Premium
join:2003-08-22
Toledo, OH
·buckeye cable

Re: Too bad

I figured there were obstacles that I just wasn't aware of -- there's a reason why I'm a networking guy, not a suit.

On a side note, I envy you Konaguy; as I mentioned earlier, I'd jump at the opportunity to relocate to Hawaii. Last year was my first visit there, but my father (who has vacationed in Hawaii many times) has been talking about retiring there a lot lately. I come from Naples Florida so I'm no stranger to wealth and scenic beauty, but Hawaii has easily blown away every other place I've been to so far!

- Tate

--
Happiness is an OC-48 in your basement...

pog
Premium
join:2004-06-03
Kihei, HI
·Hawaiian Telcom

DSL has been great...

DSL has been great all along... GTE, Verizon and now Hawaiian Telcom. A recent exception, though, was with HT having some very odd peering arrangements. That seems to be basically fixed now.

The back office issues are pretty serious, however. Currently, my problem is with the billing department that keeps sending bills for a number that has been disconnected since last September. I think it's now up to $400. I'm glad I don't have them hooked up to my bank account anymore. (I stopped that when they double dipped last August... oops!) I call them every month to no avail, btw. They can all see the problem but they claim to be powerless...
--
My Site
DJ_Kismuth

join:2001-11-25
Chicago, IL

too bad

I didn't even know they had internet in Hawaii!!! LOL!! haha.

People who live in the middle of nowhere have no right to complain about their broadband woes.

I live in the middle of Chicago, have no car, no parking, dirty air, constant noise, homeless people by my front door, smells, crime, noise, crime, noise, etc, etc.... but hey, i get 20mbps cable for $90/month!!!!

You want fast internet? Give up your free parking and pristine country views. I love my fast internet and polluted air baby...

RR Conductor
RailRoadDude
Premium
join:2002-04-02
Redwood Valley, CA
·Comcast


2 edits

Re: too bad

said by DJ_Kismuth See Profile :

.

People who live in the middle of nowhere have no right to complain about their broadband woes.

Yep, us rural areas don't deserve anything, we just provide you in the cities your FOOD, WATER, POWER, LUMBER, among other things, remember that the next time you and some of the other posters who think they are all that just because of where they live.

We're all American's, and we should all be able to enjoy things like broadband that are so needed to succeed in today's world. If we suffer, you suffer, as the WWII saying said "United We Stand, Divided We Fall!"
--
»www.freightrailworks.org
»205.245.189.161:1100 Galesburg,IL Rail Cam
»www.amtrak.com
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»www.cctrailroad.com
»www.bnsf.com


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

Re: too bad

said by RR Conductor See Profile :

... we just provide you in the cities your FOOD, WATER, POWER, LUMBER, among other things ...
If you were giving us these things for free, then maybe you'd have a point.

Oh wait... we buy all those things. So you receive money for these products and services. You're no different when you buy goods or services made by people in cities.

Then there's the matter of farm subsidies...
--
This isn't fair! I was only supposed to hate just ONE presidential candidate!

SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Burlington, MA

said by DJ_Kismuth See Profile :

People who live in the middle of nowhere have no right to complain about their broadband woes.

Well, that's pretty elitist, don't you think? I'm not "socialized blah-blah" fan boy, but I do believe in progress. The internet is moving closer and closer everyday to being the conduit that connects "those that know" with "those that want to learn", suppliers with customers and even to deliver plain old entertainment.

Those with goods and services for sale are already relying more and more on broadband by advertising and selling over those connections. Broadband is increasingly found in the classroom at all grade levels. The reality is that broadband is quickly replacing yesterday's chalkboard, storefront and TV. Who knows what it will bring tomorrow. Everyone should have a right to affordable access, as those that do not will be left behind.

It is not in anyone's best interest to not give a sh!t if large geographical areas are left in a broadband "black hole". The cash "savings" to the broadband "haves" by allowing the broadband "have-nots" to remain that way, will ultimately cost substantially more than you think.
--
United we bargain, Divided we beg!

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


1 edit

Carlyle Seriously Underestimated The Magitude

I think Carlyle seriously underestimated the magnitude of migrating 80 backoffice systems from the mainland back to Hawaii. They gave Bearing Point a year to do the systems integration. Now you can see the results of that poor decision via huge financial losses and a bad public image.

But there has been some bright spots. They've invested in building the infrastructure to offer up to 11Mbps/1Mbps speeds here. If Verizon still owned Hawaiian Telcom, it would be unlikely that we'd be seeing those speeds. Hell would have to freeze over if we were to get FiOS.
SnowyOne
Premium
join:2003-04-05
Kailua, HI
·RoadRunner Cable
·Clearwire Wireless

It's not a verizon issue...

Haw'n Telcom provides reliable telecommunication service but every other facet of the company is an unqualified disaster. It's not price that's driving their customers away, it's their lack of competence with billing & scheduling issues that even I've even gotten caught up with.
After scheduling an office move with them 2 months in advance of the move, they were still one week late installing the new lines. One week is a hell of a lot of missed calls. It took 5 months of fighting with them to get the first bill at the new location. Yup, I had to fight with them to get a bill! The new phone book they published didn't list the business address's, just the business name & Ph#. When I asked why the response was "We didn't know your address", honest, that was the response I got. Thankfully they sold the book publishing rights a few weeks ago to lower their debt. Truth is when The Carlyle Group bought the company from verizon it was part of their buyout plan to immediately sell off the phone book to help defray the purchase cost but The State of Hawaii saw that as carpet bagging & forced them to raise the capital without undermining the largest phone carrier in the state.
Edward1978

join:2007-07-23
De Soto, IL

Umm, I think it is a right...

It is 2008, a person should be able to get DSL/cable broadband anywhere. This is the US, not some 3rd world country.
nycxbl

join:2004-06-06
New York

...

No matter how you look at it, or what you do, there isnt anything that can be done for the rural areas. Verizon is a business, and in a capitalist country, they will have to cut spending and expense to survive, if the rural areas drag down the company the entire country might lose its infrastructure, affecting more company, its a fair trade off. Lose something instead of losing everything, which can harm the economy, and then affecting the rural areas again. I only see increase government spending to help the rural areas, but not many Americans like increase taxes.
Forums » Hawaiian Telcom Faces Dark Future


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