Hawaiian Telcom wins cable franchise for O'ahu

HONOLULU – The Department of Commerce and Consumer Affairs (DCCA) today granted Hawaiian Telcom Services Company, Inc. (“HTSC”) [OTC: HWLT] a non-exclusive cable franchise for cable television services on the island of O’ahu.

The order allows HTSC to utilize the public rights of way to provide cable service to consumers. In exchange, the order requires that HTSC utilize digital technology to provide a wide diversity of programming content and services to the public. While HTSC’s cable service will not initially be available in all geographical areas, HTSC will roll out its cable service to more subscribers as the network utilized by HTSC is upgraded. In addition with HTSC entering the market, there will be competition in cable services, and consumer will have the ability to choose their cable service. HTSC plans to offer “bundled” services, combining the cable service in a bundle with other telecommunication services.

In addition, the order provides continued funding to ‘Olelo for PEG access services, and the Hawai’i Public Television Foundation – PBS Hawai’i. Further, HTSC will provide a pre-determined amount of free interconnections to the State’s INET for government or educational use and access to a radio facility on the Windward side.

In view of the 15-year franchise term, HTSC is required to submit technology upgrade plans every five years which must be approved by DCCA, and which may result in amendments to the franchise conditions.

“These commitments by HTSC warrant the issuance of a cable franchise term of fifteen years, subject to ongoing supervision and review by the State,” said DCCA Director Keali’i Lopez. “By issuance of this franchise, it will provide the consumer with more choices for video services, as well as to give HTSC the opportunity to provide bundled services that fits into its overall business model,” she added.