Sandwich Isles Communications

[Konaguy]

In my opinion this is waste of money building a stewide fiber-optic network interconnecting all Hawaiian homelands. SIC is eventually receiving 400 million dollars from USDA RUS to accomplish this. Which will be repaid by the Universal Service Fund.

My thinking is there is more pressing needs like getting water and critical infrastructure in place like roads on these homesteads. IMHO definately not wiring every homestead with a fiber-optic connection. There are homesteads here on the Big Island that very few if any people are currently living on. Places that come to mind South Point,Mauna Kea above Hilo. Nonetheless they will still be wired with fiber-optic cable.

I know I'm probably very jealous as only Hawaiians living on DHHL lands will have access to this network. But on the other hand I just don't see the long term viability of this project.

[Konaguy]

I found out something very interesting, Home Depot in Hilo is using Sandwich Isles Communications for telephone service. Their number is 808 920-8400. Home Depot is on DHHL land but this is sort of borderline in my opinion. As Home Depot is not
a Native Hawaiian entity. Home Depot is a multinational retail chain just leasing DHHL land.It was my understanding that SIC network was going to benefit only Native Hawaiians
and Native Hawaiian businesses on DHHL land.

[craigwatanabe]

You should check with WalMart and every store in the Waiakea Shopping plaza as well as the Prince Kuhio Mall too since they're on DHHL land as well. It is my understanding though that since HD is leasing the land from DHHL, the property is still under their jurisdiction (DHHL) and that HD has to abide with whatever phone service provider is allowed to serve there. Funny though since right next to WalMart is a Verizon Facility.

The fact that lease monies from HD and WM are being used for the benefit of Native Hawaiians is a good arguement allowing these retailers to utilize Sandwich Isle's phone service if by using those services it allows Sandwich Isle to keep operating costs down to Native Hawaiians and taxpayers by charging tenants (HD and WM) for phone use while on DHHL lands.

HD also has received the blessings of the neighboring and inclusive Native Hawaiian communities on DHHL lands that HD will be impacting. HD gave those associations checks in the amount of $2500 each as a gesture of goodwill from the employees of HD Hilo. Basically there were no objections to the construction of store #8453 (Hilo Home Depot store identifier) by any Hawaiian organization directly or indirectly impacted by it's presence.

Home Depot is very much a part of the community as it has dedicated itself to the needs of those impacted thru it's association with Habitat for Humanity and other community service organizations. As in Florida's recent bout with it's hurricane catastrophes, those Home Depot stores donated much needed building materials for those in need. Likewise isn't it nice to know that Home Depot Hilo will have the materials available if and when it is needed in the event of a civil emergency.

140 local jobs were created with the development of HD #8453. DHHL got a boost in lease monies from HD, the Panewa neighborhood association was one of the groups who received monies to suppliment their budget, and Sandwich Isle Communications got a long term customer who will help solidify their existance beyond tax credits and federal grant monies to facilitate the needs of Native Hawaiians.

In my book HD using Sandwich Isle phone service is a win-win situation for all those involved.

[Konaguy]

Don't take my posting above as my opposition to Home Depot being built in Hilo,
because it is not. I checked Office Max, Ross, Macy's,Wal-Mart, Sears they
all use Verizon Hawaii prefixes. The only one I stumbled on that uses Sandwich
Isles Communications is Home Depot. All the above businesses are on DHHL land.

The Verizon facility next to Wal-Mart is not a central office, it is Verizon's
baseyard for their equipment and vehicles. On the other hand the facility
on Railroad Avenue on the left hand side near the Makaala Street intersection
is Sandwich Isles Communications 920-xxx prefix central office.

My beef with this situation is this 400 million dollar fiber-optic taxpayer funded network shouldn't be benefitting a multinational corporation like Home Depot.
It is being built to benefit only Native Hawaiians and their businesses on DHHL
land.

[Konaguy]

Craig, just to let you know I found out that DHHL requires
all tenants of DHHL land to use Sandwich Isles Communications.
I got that information straight from DHHL. But nonetheless
I still firmly believe Home Depot has no business using
Sandwich Isles for their telephone service for reasons I mentioned above.

[pzarquon]

I still firmly believe Home Depot has no business using Sandwich Isles for their telephone service for reasons I mentioned above.Do you honestly believe Sandwich Isles was created to not only benefit, but only directly serve, Native Hawaiians? Why would anyone start a telecommunications company, a revenue-generating operation, and specifically limit their market? "I want to start a restaurant to support my family... but only people with last names that begin with 'K' will be allowed to eat!"

If only Native Hawaiians were allowed to shop at Na Mea Hawaii or the Hale Ku`ai Cooperative, they'd be out of business in a day.
My beef with this situation is this 400 million dollar fiber-optic taxpayer funded network shouldn't be benefitting a multinational corporation like Home Depot. It is being built to benefit only Native Hawaiians and their businesses on DHHL land. How is it benefiting Home Depot? Aren't they paying for the service? Aren't they paying rent?

A "multinational corporation" is probably the ideal client for arrangements like these, as they are able to pay a lot, and pay reliably. If revenue generation (to benefit Native Hawaiians) was a primary concern, I'd take a Home Depot over four dozen Cheapo stores. :p

[Konaguy]

The rules they have to follow in regards to their loans and their license
to operate specifically prohibit serving non-DHHL areas. Here is what
Mr. Yonenaka of DHHL told me [Which supports what I was told before]

"Dear Aaron:
SIC is limited to only DHHL lands. That is part of their requirement of
funding."

It isn't a question that they are or not paying for the service from SIC.
It is a question of the basis of whom their 400 million dollar fiber-optic
network is going to benefit. It wasn't built to benefit Home Depot I can
tell you that.

[pzarquon]

SIC is limited to DHHL land. Home Depot sits on DHHL land. Therefore, Home Depot uses SIC. I fail to see the conflict. A different way to phrase it could be, "Tenants on DHHL land should use DHHL-linked SIC." That is, monies toward rent andtoward telecommunications are going toward Native Hawaiian programs. This is preferable to Home Depot using DHHL land but sending money to Verizon, right?

Use of SIC by anyonebenefits Hawaiians. That it is a technologically competitive network is a good thing, and benefits Home Depot only insofar as how it's distinguished from other providers' offerings.

[Konaguy]

It is unfortunate that you do not see the conflict here. Sandwich Isles is building a 400 million dollar taxpayer funded fiber-optic network that only people on DHHL land will be able to use.

I spent a year from 2002 until early 2003 trying to fight this project because I felt and still believe this is A) A waste of taxpayer funds B) Racially : discriminatory use of taxpayer funds. USDA RUS is loaning 400 million dollars to SIC which will be repaid by the Universal Service Fund. Which every phone customer in the United States pays into.

I gave up 2003 my fight against SIC as the bureaucratic web was just a bunch of roadblocks. My interest got renewed when I found out Home Depot is using Sandwich Isles for phone service. To me Home Depot using SIC's network is wrong. I know DHHL mandates every lessee use SIC. But to me that shouldn't include Home Depot as that is not a native Hawaiian entity.

Anyone who cares about how their taxpayer money is used {or wasted -Hello Mel} should really take a close look at this project.

[craigwatanabe]

Hey guys! Sorry I haven't chimed in earlier. Aaron thanks for the private message linking me back into this...yeah really :rolleyes:

Anyway I don't think Home Depot had much choice in deciding who will carry their phone service since becoming a tenant of DHHL lands. The important thing is that they had the blessings of DHHL, and the native Hawaiian communities it impacts.

As for taxpayer dollars, there are a lot of start up private company entities that benefit from federal grant monies (taxpayer dollars) to get their businesses started. I'm one of those. I hired a grant writer to snag federal grant monies to start up an organic farm business that will provide organically grown veggies for the federally funded school lunch program for my farm business.

Yes I will be cutting a paycheck from the revenues generated by this company started with taxpayer monies, but it's benefitting the needs of taxpayer's children who attend public schools.

Likewise Home Depot's alliance with SIC fiber network is benefiting native Hawaiians by virtue of it payments to suppliment SIC's existance to provide communications for Native Hawaiians. HD's outreach programs also are benefiting those Native Hawaiians on DHHL lands. In order for these programs to work HD needs a phone system that can help and direct these individuals.

I see your point that HD is benefiting from SIC privately, however HD's payments to SIC for use of services is also benefitting Native Hawaiians and that's what SIC's existance is all about isn't it? Whatever keeps SIC alive to help facilitate the needs of Native Hawaiians should be deemed as beneficial. HD's support of SIC is benefitting SIC therefore HD should be allowed to use SIC's fiber network.

Plus the store manager of HD Hilo is Hawaiian as well as a lot of the associate managers, sales associates and stock crew. HD is benefitting Hawaiians in general in more ways than just it's use of SIC. This is a way in which a big corporate company can help Native Hawaiians instead of hurting it. There is no harm to Native Hawaiians from HD into Hilo only gains. The only complaints I've heard came from Haole's who just have a problem with corporate America.

[Konaguy]

Craig I work for corporate America [Kmart], or did you conveniently forget. Plus I don't understand why my ethnicity has anything to do with the issue at hand.
I was born and raised in Kailua-Kona and have been a taxpaying citizen for
the last 9 years. I take a huge offense bringing racial overtones into this.

Getting back to that issue at hand, I still believe the project being built
by Sandwich Isles Communications is a waste of taxpayer funds. Making
things worse is since SIC is prohibited from serving non-DHHL areas
I strongly feel that this boondoggle project won't be self supporting.
So guess what it will probably require continuous taxpayer subsidies.

Thus the bottom line is I'm definitely angry about this project. I would've
not spent a year of my life fighting it if I felt differently.

Also this has NOTHING to do with Home Depot opening up in Hilo.
It is just with whom Home Depot is using for telephone service.

[mel]

Anyone who cares about how their taxpayer money is used {or wasted -Hello Mel} should really take a close look at this project.

Aaron, thanks for throwing bait at me once again via this message thread that I have not been involved with and through the private message function of this board.

I don't like being dragged into an issue that I don't know too much about. So at this time I have "no comment".

________________________________
Caution: You have entered a liberal inundation zone.

[craigwatanabe]

Craig I work for corporate America [Kmart], or did you conveniently forget. Plus I don't understand why my ethnicity has anything to do with the issue at hand.
I was born and raised in Kailua-Kona and have been a taxpaying citizen for
the last 9 years. I take a huge offense bringing racial overtones into this.

Getting back to that issue at hand, I still believe the project being built
by Sandwich Isles Communications is a waste of taxpayer funds. Making
things worse is since SIC is prohibited from serving non-DHHL areas
I strongly feel that this boondoggle project won't be self supporting.
So guess what it will probably require continuous taxpayer subsidies.

Thus the bottom line is I'm definitely angry about this project. I would've
not spent a year of my life fighting it if I felt differently.

Also this has NOTHING to do with Home Depot opening up in Hilo.
It is just with whom Home Depot is using for telephone service.


Aaron I never singled you out when I meant "Haole", as a matter of fact I never even knew you were Haole until you took it personally. The reason why I mentioned Haole is because 1) the only negative editorial I've read about in the Hilo Tribune came from someone with a Haole name, and 2) the only arrogant people I've seen in Hilo HD were two Haole people that made this magnificant fuss about not getting what they came down for because HD was out of stock. I never meant to direct the arrogance at you. Heck for some reason I never thought of you as Haole in a negative sense or Haole at all since you never gave away your last name, only an initial. But regardless, I apologize if I came across as being racist towards you...I wasn't and I'm sorry for that perception. :(

And I knew you worked at K Mart, I just never wanted to publicly disclose that since you only mentioned that to me in private messages. Your remarks about WalMart and big box retailers in general made me hesitate about wanting to mentioning anything about linking you and your feelings of corporate america with Kmart (which was the first big box retailer to set foot in Hawaii on Nimitz Highway) without making you sound like a hypocrite or maybe I just didn't understand your stance against Wal Mart to begin with and for that I apologize as well, however you did say some pretty negative stuff about WalMart in those threads (and they're still published for anyone to read).

However I do understand your concerns about Home Depot, from a logical and legal perspective you are correct, however Home Depot's intentions aren't to circumvent anything it just needs phone lines and SIC is the only provider available. What else can you do? Not build on it? Then everybody loses.

SIC's fiber system is up and running paid for with taxpayer money. SIC needs to stay in existance and in order for the invested taxpayer money sponsored company to stay alive, it has to either accept business from private entities OR keep getting funding at the expense of the taxpayers, as a taxpayer wouldn't you choose to have SIC fund itself thru private capital. Hawaiians living on DHHL lands don't have all the luxuries of high speed internet and nowdays the internet is fast becoming the primary way of doing business. I've been a taxpayer for 27-years, born and raised in Honolulu and don't have a problem with SIC at all and I'm a Republican! I do believe that government subsidy is necessary for those in need.

And Native Hawaiians did have their lands illegally taken away from them by our own government. This association with SIC, DHHL and the Federal government will help compensate for that wrong. It may have been wrong to discriminate by allowing taxpayer dollars to fund one race, however it was even worse when the US government discriminated against the Hawaiians in the illegal overthrow of their own existance, their royal governance. I see nothing wrong with undoing the injustices by bending the constitution to benefit a race that was negatively impacted by the goverment that drafted that very constitution that protects us.

Let's not turn this into another WalMart thread. Whatever HD, SIC and DHHL agreed upon is now in the open and let's see if a lawsuit arises. Personally I don't think this is much of an issue, but if it does become one, I'm sure Home Depot will severe it's business contract with SIC and pay for telephone service thru Verizon even if it takes paying for running poles and lines from the demarkation point to HD's front door. It's not Home Depot's intention to be a bad neighbor, as a matter of fact I've heard a lot of good things from the many customers that have actually patronized it.

The Haole remark is simply because it literally was two Caucasian people (one man and one woman) in seperate incidents that really had no social manners and berated several Home Depot sales associates and nearby customers and their children had to hear their foul mouths as well. I should have just said, two people and not made any reference to their race. My mistake and I'm sorry for that racist remark and to you Aaron since you took it personally.

But anyway your case raises an interesting point and I would like to see how this unfolds if it even does.

Okay are we all back to being happy people here? :)

[Konaguy]

1) the only negative editorial I've read about in the Hilo Tribune came from someone with a Haole name, and
I was that person who wrote that letter to the editor about SIC to the Hilo Tribune Herald and the Honolulu Star Bulletin/Advertiser, Hawaiian Island Journal, Maui News.
But regardless, I apologize if I came across as being racist towards you...I wasn't and I'm sorry for that perception. :(
Thank you for apologizing I really do appreciate it.
And I knew you worked at K Mart, I just never wanted to publicly disclose that since you only mentioned that to me in private messages. Your remarks about WalMart and big box retailers in general made me hesitate about wanting to mentioning anything about linking you and your feelings of corporate america with Kmart (which was the first big box retailer to set foot in Hawaii on Nimitz Highway) without making you sound like a hypocrite or maybe I just didn't understand your stance against Wal Mart to begin with and for that I apologize as well, however you did say some pretty negative stuff about WalMart in those threads (and they're still published for anyone to read).
I know I probably sounded like a hypocrite looking back at it. But I don't regret what I said about Wal-Mart, not in the least...but that is getting O/T
But anyway your case raises an interesting point and I would like to see how this unfolds if it even does.
Well truthfully the fight I was pursuing two years ago is over with. It was
caught in a bureaucratic web.
Aaron, thanks for throwing bait at me once again
That wasn't my intention, check your e-mail please.

[Konaguy]

One interesting thing I found tonight was this :
http://www.fcc.gov/Daily_Releases/Daily_Business/2004/db1029/FCC-04-256A1.doc

Evidently Sandwich Isles Universal Service Waiver has been recinded and they will have to re-apply for it.

[kimo55]

The Haole remark is simply because it literally was two Caucasian people (one man and one woman) in seperate incidents that really had no social manners and berated several Home Depot sales associates and nearby customers and their children had to hear their foul mouths as well. I should have just said, two people and not made any reference to their race. My mistake and I'm sorry for that racist remark...

lemme interject sumpin here;
in defense of clarity, there is absolutely nothing wrong OR rascist by describing the actions of people and also defining them as haole, if and when they are.
Racist implies the belief that race is the primary determinant of human traits and capacities. Also it says racial differences produce an inherent superiority of a particular race. It is a predudicial term. None of that goes on when someone uses the word haole in this way. And NO one is "pre-judging" .
Ok. Now back to our usual programming.

[Konaguy]

lemme interject sumpin here;
in defense of clarity, there is absolutely nothing wrong OR rascist by describing the actions of people and also defining them as haole, if and when they are.


Try walking in my size 13 shoes the last almost 29 years living here.When someone has used the term haole I have found it very derogatory in most cases.It wasn't my fault my parents moved here 31 years ago and I was born and raised here. So it hits a very very very very very raw nerve that term.

[kimo55]

When someone has used the term haole I have found it very derogatory in most cases... it hits a very very very very very raw nerve, that term.

that is the power YOU give it, for it intrinsically is NOT derogatory. Unless it is USED as an insult and you accept it as an insult. Remember Eleanor Roosevelt's famous words:
"No one can make you feel inferior without your consent."

[admin]

Further deconstruction of the meaning and power of the word 'haole' can be added to the "Meaning of the Word 'Haole'? (http://www.hawaiithreads.com/showthread.php?t=1768)" thread. Let's keep this discussion to SIC, Home Depot, DHHL, and the like.

[craigwatanabe]

So with the FCC indicating SIC should be an LEC vs an ETC don't they still get waived because the FCC indicated if SIC were to become an ETC it would put a burden on the Universal Service Waiver or UTC? Damn all those acronyms!

And now that Verizon has successfully argued that the DHHL lands in question were being "served" by virtue of the proximity of their central offices does that mean Verizon now has to provide phone service to DHHL tenants as well? If so they had better start putting up poles or trenching and justify their arguement.

And in the end how does this ruling affect Home Depot? Whether it's SIC or Verizon, someone has to provide phone services to the area. I think it's the State Commission that erred in it's initial decision to grant SIC exclusive rights to serve those DHHL lands when in fact Verizon was granted the right to serve, "The State of Hawaii" inclusively. That initial decision opened the doors for SIC to enter and serve an area that the state had decided was excluded from Verizon's service area (the entire state)

I think the question now raises an interesting point...is DHHL lands subject to the requirements of the LUC (Land Use Commision) if DHHL lands are not included within the jurisdiction of the State of Hawaii? And if DHHL lands are inclusive to the State of Hawaii, then isn't limiting ownership of DHHL lands under the State of Hawaii illegal by virtue of the constitution barring racial discrimination?

If the arguement can be stated that DHHL lands are excluded as an entity of the State of Hawaii then the constitution doesn't apply, however it can also be stated that Verizon's service area doesn't include DHHL lands because DHHL lands would have been separate from the State of Hawaii.

If the arguement can be stated that DHHL lands are inclusive as an entity of the State of Hawaii, then the constitution does apply and the provision to exclude non-Hawaiians from purchasing DHHL lands can be ruled as unconstitutional.

So what is it? And more importantly were their any amendments allowing this kind of discrimination.

[Miulang]

This smacks to me of payoffs from Sandwich Isles to somebody who manages the DHHL infrastructure. Either that, or it's reverse discrimination, which has been struck down by many state supreme courts.

If, as Craig pointed out, that DHHL lands are not considered part of the State of Hawai'i land, then I suppose they can do whatever they want. That's what NAs can do on their reservations. And I suppose that the reason why megacompanies like HD were allowed to build on DHHL land (instead of turning the land into affordable housing for Hawai'ians) was to create rental income and possibly jobs for the NHs. But how many of the employees at HD can claim kanaka maoli lineage? Again, it's all about the money.

And if Verizon, by virtue of the proximity of its central office, can efficiently service the DHHL lands, then why bar them from competing? Of course, the big caveat is that you can't really count on Verizon to provide much public utility at this point because they want out of that business. So will Carlyle put up the same stink that Verizon did when it becomes the incumbent carrier for the State of HI?

Miulang

[Konaguy]

My interpretation of that FCC order is, the FCC is re-evaluating if really the
areas served by Sandwich Isles are really underserved. Which was one
of the things I was pointing out all along.

[Konaguy]

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-105A1.pdf

Here is the FCC public notice soliciting comments in regards to
SIC's application for "study area" waiver.

[Konaguy]

http://www.hawaiitribune-herald.com/articles/2005/01/19/local_news/local02.txt

Hawaii firm must reapply for key funding waiver

By HUNTER BISHOP
Tribune-Herald staff writer
A Hawaii company that is currently building a $400 million telecommunications network linking Hawaiian Home Lands throughout the state will have to reapply for a federal waiver that provides funding for the project.

Sandwich Isles Communications has already spent $160 million on its fiber-optic network after getting its waiver approved initially in 1998.

But the Federal Communications Commission ruled in October on an appeal by Verizon Hawaii, the state's largest local telephone provider, that claimed Sandwich Isles was wrong to say telephone service was not available on Hawaiian Home Lands it planned to serve.

[Miulang]

More info on the Sandwich Isle petition before the FCC. The FCC is requiring Sandwich Isle to go through an application process which it wasn't required to do when it first set up business. This process should put to rest any protests by Verizon about favoritism if the application is approved.

http://the.honoluluadvertiser.com/article/2005/Jan/30/bz/bz01p.html

Miulang

[Konaguy]

There was an article on this subject also in the Hawaii Tribune Herald from Hilo

http://www.hawaiitribune-herald.com/articles/2005/01/19/local_news/local02.txt

"Verizon, known as GTE Hawaii in 1998 when it filed the appeal, said some of the Hawaiian Home Lands cited by Sandwich Isles are unoccupied but adjacent to areas already served by Verizon. Verizon also cited its state charter that obligates it to provide access to telephone service throughout the state."

"But in a written decision released Oct. 29 -- more than six years after the appeal was filed -- the FCC concluded that it "erred by ignoring evidence in the record that the areas Sandwich Isles proposed to serve were not unserved." The commission ordered Sandwich Isles to reapply for the study area waiver, but allowed the company to continue operating while the new application is being considered."

"It's certainly not a good ruling for Sandwich Isles," said FCC spokesman Mark Wigfeld. "The question is, can they make a case whether the area is unserved or not?"

I was even quoted in it for the article :

" Aaron Stene, a telecom industry observer from Kona and critic of Sandwich Isles' project, agreed with Cole. "This is significant," Stene said. "If they can't get paid back by the Universal Service Fund they could be blown out of the water. I have some strong doubts about their financial model. I thing it's a waste of taxpayers' dollars."

[Konaguy]

It seems I'm the only one concerned about this. Verizon Hawaii
is on the verge of being purchased by The Carlyle Group. TCG
has no interest or ability to roll out FTTH on a statewide scale.

On the flip side Sandwich Isles Communications is receiving
federal loans to build a fiber-optic network that eventually
will service 2% of the population on only Department of Hawaiian
Homelands. The other 98% of the populationwill be in the slow
broadband lane.It doesn't seem to be fair to me.

I wish I had the multi millions to roll out my own fiber-optic cable project.

[Miulang]

There was a story in the Maui News earlier this week where they reported that Sandwich Isle was about 80% complete in their fiberoptic cabling on DHHL homestead land on Maui. They have to dig trenches through part of Main St. to get to Happy Valley, so that's been the holdup because of the inconvenience to people who drive that way daily. I don't think there is too much space for commercial businesses on the DHHL lands on Maui, so I don't think Sandwich Isles will run into the same kinds of problems on Maui as it has on the Big Island.

And yeah, wouldn't it be nice to have fiberoptic cabling running through your neighborhood? I can't get DSL where I live because I'm too far from the central office. :mad:

Miulang

[Konaguy]

Well to me it seems I have two choices A. Find or win that multi millions
to build my own fiber-optic network here B. Find someway to be able
to move on to DHHL land [My dad was joking with me that I should find
a Hawaiian Girl and marry her thus I could live on DHHL land]. As it stands
right now eventually only 2% of the population here in Hawaii will get
FTTH.

[Konaguy]

Today is the last day to file public comments in regards to Sandwich Isles Communications USF waiver application. There has been 23 published comments 22 were for the FCC to give the waiver to SIC--One was against the waiver application.

http://gullfoss2.fcc.gov/prod/ecfs/comsrch_v2.cgi

Proceeding: 96-45, make sure to select Hawaii.

[Konaguy]

The Hawaii Telecom [Carlyle] wrote a letter wanting patience in any decision
relating to SIC's waiver. Pacific LightNet wrote a letter in support of SIC's waiver.


http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6517082582
http://tinyurl.com/4f83
Pacific LightNet's comments for SIC's waiver.

http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6517282348
http://tinyurl.com/4f83
Hawaiian Telecom's comments against SIC's waiver.
--

[Konaguy]

http://www.fcc.gov/Daily_Releases/Daily_Digest/2005/ddtoday.html

SANDWICH ISLES COMMUNICATIONS, INC. PETITION FOR WAIVER OF THE DEFINITION OF "STUDY AREA" CONTAINED IN PART 36, APPENDIX-GLOSSARY AND SECTIONS 36.611, AND 69.2(HH) OF THE COMMISSION'S RULES. Granted the Petition for Waiver. (Dkt No. 96-45). Action by: Acting Chief, Wireline Competition Bureau. Adopted: 05/16/2005 by ORDER. (DA No. 05-1355). WCB DA-05-1355A1.doc DA-05-1355A1.pdf DA-05-1355A1.txt

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-05-1355A1.pdf

[Konaguy]

http://www.hawaiireporter.com/storyPrint.aspx?9341371c-c4b7-4b47-8855-8279fefcf04c

Sandwich Isles Communications: Political Connections Pay Off
Special from Hawaii Free Press
By Andrew Walden, 6/2/2005 12:57:53 PM

In a little-noticed May 16 ruling, the Federal Communications Commission (FCC) has granted a waiver necessary to allow Sandwich Isles Communications to complete construction of its $500 million project to link 69 Hawaiian Homelands properties with a fiber optic communications network.

Sandwich Isles, had completed about $160 million worth of construction bringing its network to all the islands except the Big Island, when in October, 2004 the FCC suddenly acted on a 6-year-old complaint from telecom rival Verizon. As a result of the October ruling, Sandwich Isles was forced to reapply for its FCC waiver which allowed SIC to receive $400 million in federal funds taken from the "Universal Service Fund" (USF) tax on consumers’ phone bills.

The Universal Service Fund tax is intended to subsidize telecommunications service to un-served rural areas. Verizon Hawaii, now re-named Hawaii Telecom after being purchased by the Carlyle Group, had argued the DHHL lots Sandwich Isles proposed to serve were not unserved because they were within Verizon territory. With the waiver granted, federal funds can once again flow into Sandwich Isles Communication’s coffers and construction can be completed on the Big Island.

[Miulang]

According to this article in today's Advertiser, Sandwich Isles (http://the.honoluluadvertiser.com/article/2005/Jun/19/bz/bz03p.html) telecom is getting approximately $13,700/customer to provide landline services to Hawaiian Homestead residents. Nextel Communications, which provides wireless services to the same area, will receive approximately $13,400 for each wireless customer that it serves. The article continues by saying that the next highest subsidized rural phone service (in Kansas) only costs about $550 per customer.

Each and every one of you is supporting this ridiculously high cost every month via the $2/customer fee you pay to support rural phone service.

What's wrong with this picture? Why didn't Sandwich Isles just set up a wireless VOIP system instead of spending all that money putting in fiber? Even countries like China (as backwards as it may seem) is not spending money on landlines; most of the developing world is installing towers and going to wireless.

Miulang

[Konaguy]

I am very happy that they covered this. It is showing a great disparity in
money being spent, which should raise some eye brows. Some of the problem
is the USF/FCC don't entice recipients to be efficient with the money.

On a related note Hawaiian Telcom is asking the FCC to reverse their decision
alowing SIC to continue to receive USF funds.
http://the.honoluluadvertiser.com/article/2005/Jun/18/bz/bz07p.html

[Konaguy]

There was a Washington Post article today in regards to congressional investigation into USDA RUS mismanaging rural broandband deployment.

link (http://www.washingtonpost.com/wp-dyn/content/article/2007/05/01/AR2007050101919.html?nav=rss_technology)

This is what I sent to the House Committee on Agriculture.

Greetings,

I had a chance to read this article in regards to your committee grilling the USDA RUS on mismanaging funds for rural broadband deployment.

Washington Post article

I highly urge your committee to examine the 400 million in USDA RUS loans given to Sandwich Isles Communications. SIC is building a fiber-optic network to service the Department of Hawaiian Homelands land tracts here in Hawaii. Some of these areas are already receiving service from the ILEC, Hawaiian Telcom.

In my opinion I find it extremely wasteful that SIC is building this network.On top of that I find it racially discriminatory that all taxpayers are funding this network.Especially when only DHHL lessee's can use it.

I hope you will continue your investigation of the USDA RUS and their wasteful managing of rural broadband deployment.


Best Regards,
Aaron Stene

[Random]

I want to know: Is SIC better than Hawaiian Telcom?

[Konaguy]

I want to know: Is SIC better than Hawaiian Telcom?

Hard to say as A) Their network is not complete B) They only can legally service Department of Hawaiian Homelands areas.

[Konaguy]

Sandwich Isles has finally received approval to build the interisland submarine fiber-optic network. It is being financed by Paniolo Cable Company LLC. Which will sublease it to Sandwich Isles Communications. Paniolo is owned wholly by a Denver, Colorado venture capitalist. Sandwich Isles will have exclusive access to this fiber-optic network, which run up to 2.5Gbps.

http://www.fcc.gov/Daily_Releases/Daily_Business/2007/db0718/DA-07-3293A1.txt
http://www.westhawaiitoday.com/articles/2007/07/28/local/local06.txt
http://www.knowledgemosaic.com/FCCData/DailyDigest/DA-07-3293A1.pdf

[Konaguy]

I wonder how Sandwich Isles can offer DSL service when their network is all fiber-optic. It is my understanding that DSL can't work over fiber, only copper
(to the central office).

[craigwatanabe]

I wonder how Sandwich Isles can offer DSL service when their network is all fiber-optic. It is my understanding that DSL can't work over fiber, only copper
(to the central office).

DSL is just an acronym for Digital Subscriber Line. Technically anything digital can be considered that.

Is Sandwich Isle's service to the home all fiber? I would imagine at some point it would convert to copper to the home.

The only difference between copper and fiber is the way information is transmitted. One is via electrron flow the other is via photon flow. Regarding fiber and the flow of photons, once converted to electron flow (opto-electronics) it's the same DSL coming out of the servers, it's just that fiber does it faster and more efficiently

[Konaguy]

I thought it was all fiber from the home to the central office based upon what I've read. But I guess its not if they are offering DSL service. Especially since DSL can only work over a copper loop, not fiber-optic loop to the CO.

http://sandwichisles.net/DSL%20Service%20Agreement.pdf

[craigwatanabe]

I still don't understand why DSL cannot work on an optical system?

[Konaguy]

http://en.wikipedia.org/wiki/Digital_Subscriber_Line
http://electronics.howstuffworks.com/dsl.htm

http://www.lava.net/sales/dsl_faq

Phone lines delivered using fiber optic cable (not copper).

[craigwatanabe]

So it's a matter of cost. You can run DSL over fiber but if you already have conventional coax cable you don't need fiber. But if all you have is fiber then the question of cost is moot. It's the only way you can.

A telephone's limitation is the fact that it was designed for analog transmission of audio. Back in the 70's you could get what was called a Switch 56 line which was one of the first digital applications of digital over POTS. Basically Switch 56 was certain telephone lines that were "conditioned" to transmit the digital 56kb/s signals that were used in central database systems. To lease one back in the 80's would cost you about $500 per month but would give you a dedicated conditioned telephone line to send and receive modem info over POTS.

ISD or ISDN lines became more popular in the mid 80's when home computers became more popular as well. But back then you couldn't run an analog telephone line AND an ISDN line over the same twisted pair.

DSL changed all that allowing both analog and digital signals to be sent over the same twisted copper pair.

In your case Aaron, it would be impossible to run an analog telephone signal over a fiber optic system designed soley for digital application. But nowdays more 3rd party business phone systems are purely digital with an analog conversion at the home so you can use a standard telephone with a digital system. KSBE up at Kapalama uses a digital conversion system. That's why from any phone at KSBE dialing out, the caller ID at the other end will only give KSBE's main number and not the number at the desk the caller is making the call from.

It comes down to cost as the WikiPedia definition states: A DSL line can be deployed over existing cable. Such deployment, even including equipment, is much cheaper than installing a new, high-bandwidth fiber-optic cable over the same route and distance. This is true both for ADSL and SDSL variations.

[GeckoGeek]

As I understand it, all DSL is though the local phone company. The difference is what service it connects you to once the signal gets to the Central Office.

[Konaguy]

As I understand it, all DSL is though the local phone company. The difference is what service it connects you to once the signal gets to the Central Office.

Actually thats sort of incorrect, Sandwich Isles has built their own infrastructure (e.g the OSP (using fiber-optics), and central offices). So it is closed off from anyone living outside of DHHL lands.

On top of that, SIC found a Denver venture capitalist to finance building the interisland fiber-optic network. Which will connect to the SIC land based fiber-optic network on each island.

http://www.knowledgemosaic.com/FCCData/DailyDigest/DA-07-3293A1.pdf

[GeckoGeek]

Actually thats sort of incorrect, Sandwich Isles has built their own infrastructure (e.g the OSP (using fiber-optics), and central offices). So it is closed off from anyone living outside of DHHL lands.

Oh, them. Sorry, I thought it was another company kinda like Lava net.