About HAWAIIAN TELCOM, INC.

Hawaiian Telcom, through its operating subsidiaries, provides modern telecommunications services to residential and business customers in the island state. The company has almost 320,000 local access lines (aka landlines) in service. It also provides long-distance phone service to about 171,000 customers and broadband Internet access to about 100,000 customers. Hawaiian Telcom resells wireless communications services through an agreement with Sprint Nextel. Local voice services about for about 80% of revenue. The company has been in operation since 1883.

Geographic Reach

Hawaiian Telcom has some 86 offices around the state for administrative facilities, call centers, and customer service sites.

Sales and Marketing

The company’s number of business and residential customers are split pretty evenly, but business customers generate more revenue. The United States Pacific Command is one of its largest customers, and the state’s various resorts and tourist destinations are also top customers.

Financial Performance

Hawaiian Telecom's sales ticked 1% higher in 2015 to $393 million from 2014. Revenue from local voice services increased 1%, accounting for the overall increase. The company's data center business posted a 3% increase in revenue in 2015, but it accounts for just 3% of the total.

Net income came in at $1.1 million in 2015, an 86% drop from 2014. The company cited increased expenses as the reason for the decline.

Cash flow from operations was about $87 million in 2015, compared to $90 million in 2014.

Strategy

Faced with mounting competition from mobile phone providers, as well as ISP's that offer computer telephony as an alternative to landlines, Hawaiian Telecom has struggled to grow its base of subscribers and bring in sufficient revenue to fund its operations.

The company is betting that fiber optic cable is the answer. Hawaiian Telecom invested $99 million in its network in 2015, adding hundred of route miles of fiber. The company's goal is to offer an optical, IP-based broadband network that offers high-speed service. It will continue the network expansion in 2016, focusing on offering the service to more households on Oahu.

Fiber on the islands isn't the only network Hawaiian Telecom is concerned with. It has put about $25 million for fractional ownership of a trans-Pacific cable for which it will be the host of a hub in Hawaii. The undersea cable will expand date connectivity between Hawaii and Asia and the US mainland. Partners in the $250 million project are P.T. Telekomunikasi Indonesia International, Telkom USA, Globe Telecom, GTI Corp., Teleguam Holdings, and RAM Telecom International. NEC is the system supplier and integrator.

Company Background

In late 2008 the company filed for Chapter 11 bankruptcy, citing increased competition and economic volatility. It emerged nearly two years later with a decreased debt burden.

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HAWAIIAN TELCOM, INC.

1177 Bishop St
Honolulu, HI 96813-2837
Phone: 1 (808) 643-3456

Stats

  • Employer Type: Public
  • CEO: Mark Taosaka
  • Coo: Kevin J Nystrom
  • CEO: Mark Taosaka

Major Office Locations

  • Honolulu, HI

Other Locations

  • Aiea, HI
  • Kahului, HI
  • Kamuela, HI
  • Lihue, HI