Hawaiian Telcom, the incumbent local exchange carrier serving the state of Hawaii, is currently owned by Macquarie Infrastructure and Real Assets. The acquisition took place in September 2021, marking the latest chapter of who owns Hawaii Telecom.
The Early Days
Hawaiian Telcom’s roots can be traced back to 1883 when it was founded as the Mutual Telephone Company, chartered under the Kingdom of Hawaii. It was the second telephone company chartered in Hawaii, after the Hawaiian Bell Telephone Company in 1880. Mutual took over Hawaiian Bell in 1894, and with the acquisition of the phone service of the Hawaiian Pineapple Company on the island of Lanaʻi, Mutual owned the phone system of the Hawaiian islands.
In 1954, Mutual changed its name to Hawaiian Telephone Company. In 1967, the company was acquired by Connecticut-based GTE Corp., which renamed it GTE Hawaiian Tel. After the 2000 merger of GTE with New York-based Bell Atlantic, forming Verizon Communications, GTE Hawaiian Tel became Verizon Hawaii.
Ownership Changes and Challenges
In 2004, Verizon Communications sold Verizon Hawaii to the Washington, D.C.-based investment firm The Carlyle Group. The transition was not without its challenges, with issues ranging from long hold times to speak to representatives, to duplicate and delayed bills.
In 2008, the company filed for Chapter 11 bankruptcy after missing an interest payment on its debt. With the bankruptcy, The Carlyle Group’s ownership had been reduced to a small stake. After leaving bankruptcy, the company’s stock became publicly traded on the NYSE in 2010, moving to NASDAQ in 2011.
Evolution and Expansion
In 2011, The State of Hawaii Department of Commerce and Consumer Affairs issued a 15-year cable franchise license to Hawaiian Telcom, thus ending Oceanic Time Warner’s 35-year monopoly as the state’s sole cable TV provider. Hawaiian Telcom launched the service on July 1, 2011, after a year of testing in the Honolulu area. Island-wide service began in 2012.
In 2014, Hawaiian Telcom launched 500 megabits per second broadband after investing $125 million in its fiber optic network.
Acquisition by Cincinnati Bell and Macquarie Infrastructure and Real Assets
On July 10, 2017, Cincinnati Bell announced it would acquire Hawaiian Telcom Holdco, Inc., parent of local telephone company Hawaiian Telcom for $650 million. The sale received the approval of the Hawaii Public Utilities Commission (PUC) in April 2018 and was completed in July 2018.
In September 2021, Cincinnati Bell was acquired by Macquarie Infrastructure and Real Assets, making it the company who owns Hawaiian Telcom currently..
The history of Hawaiian Telcom is a testament to the dynamic nature of the telecommunications industry. From its early days as a local exchange carrier to its current status as a subsidiary of a global infrastructure asset manager, the company has navigated through ownership changes, technological advancements, and market challenges. As it moves forward under the new ownership, Hawaiian Telcom continues to play a crucial role in Hawaii’s telecommunications landscape.
Scott Sweeney is the creator of Virtual Hawaii 360. Scott is a professional marketer and a lifelong Hawaii enthusiast. Scott splits time between Oahu and Dayton, Ohio. In addition to his marketing endevours, he is also a published Ukulele musician.