FCC to cap rural telecom fund
I came across this article last night, which sounds like bad news for any company counting on the USF to prop up its bottom line. That includes Hawaiian Tel, serving the majority of telecom consumers in the state, Nextel and Sandwich Isles Communication, which is building an expensive statewide fiber optic network linking Hawaiian Home Lands. SIC and Nextel already get a combined $44 million a year from the USF. Hawaiian Tel is currently applying for $30 over five years because it has no reserves to invest in its telecom network.


Reader Comments (2)
I do not deny Hawaiian Homes its projecct (just wishI oculd tap into it.) Hawaiian Tel has failed us for generations and this fund really helps the rural folks. (From a guy who remembers Hilo with five digit phone numbers. home and biz)
Even though Puna and Ka'u are off party lines, the way HawTel engineered this change limits what services are available. According HawTel's petition, the local loops in Puna are really long. Which limit the availability of DSL service or in the future, IPTV.
In my opinion, the USF should be scrapped. There is no transparency in how the funds are used and boondoggle projects like Sandwich Isles excessively feeding at the trough.