Hawaii Broadband

Sandwich Isles Communications sent an email to Native Hawaiian customers on Thursday saying it was shutting down service on Saturday.

WASHINGTON, June 1, 2024 – A provider of Internet access and other communications services to Native Hawaiians is closing its doors on Saturday, with the company’s founder saying the money-losing operator had no other choice.

The state of Hawaii announced on Friday that Sandwich Isles Communications sent an email yesterday to its 1,500 customers that service would end on June 1, raising public safety concerns with top state officials.

 “Reliable phone and Internet service is a lifeline for our communities. It is unacceptable that Sandwich Isles Communications is planning to disconnect the services that its customers depend on with so little notice,” said Lt. Gov. Sylvia Luke in a statement Friday. “We strongly urge Sandwich Isles Communications to transition Hawaiian Home Lands lessees to alternate service providers in an orderly and responsible process.”

SIC founder Al Hee told Broadband Breakfast on Friday night that customers would lose access to Internet and landline phone service but not mobile phone service. He said SIC’s customer count was well above 1,500.

SIC has had a contract with the state’s Department of Hawaiian Home Lands to provide communications services to Hawaiian homelands, areas held in trust for Native Hawaiians by the state of Hawaii.

Hee said SIC was closing “because we are losing money and we have been for the last five-plus years. I am not going to lose any more money.”

SIC has also been engaged in a long-running dispute with the U.S. Department of Agriculture about the $150 million balance on an infrastructure loan that Hee said SIC was expecting to pay down with financial support from the Federal Communications Commission’s Universal Service Fund but was cut off.

He said losing access to USF funding in 2015 was “tied into” an FCC investigation that resulted in a $49.6 million fine against SIC and Hee over improper use of USF financial support.

Diamond Badajos, Information and Community Relations Officer for the DHHL, told Broadband Breakfast on Friday night that the state found troubling that the SIC situation could create a public safety risk if hundreds can’t call 911.

“That’s certainly a concern,” Badajos said.

DHHL has been advising SIC customers for a while to find Internet service with Hawaiian Telcom or Charter Communications. Badajos did not know how many SIC customers had already found a new provider. Hee said only 50 percent of SIC customers today had access to Hawaiian Telcom or Spectrum.

On Friday night, Charter sent out a press release announcing the launch of Spectrum voice services in Hawaiian Home Lands, saying current residential Spectrum Internet customers could receive Spectrum Voice for $14.99 for 12 months.

“Spectrum currently offers Spectrum Internet with speeds up to 1 Gig, Spectrum Mobile, and Spectrum TV to thousands on the Hawaiian Home Lands,” the company said.

DHHL is also making SIC customers aware of satellite Internet service provided by Starlink. The Hawaii government, she said, has no plans to rush Starlink terminals to SIC customers. DHHL is also promoting Dish’s satellite Internet service as an option.

In a May 30 email to customers, SIC said it needed help from DHHL to continue to offer service but was not getting it.

“Although we are still in communication with the federal government about this problem, DHHL has refused to participate in a global solution. It appears they would rather see SIC close shop than ensure your continued service,” the email said.

Badajos said, “We really don’t want to get into any slinging match with Al [Hee].

(BIVN) – The Department of Hawaiian Home Lands on Friday provided an update on the ongoing situation with Sandwich Isles Communications, warning beneficiaries that up to 1,500 households on Hawaiian Home Lands could face a sudden loss of phone and/or internet service on Saturday, June 1st. 

Sandwich Isles Communications, or SIC, announced in an email to customers on May 30 that it would end its service just two days later, the DHHL reports, noting that affected parties “are located throughout the state and include many households in remote communities.” 

DHHL says it is working to establish interim service, and transition lessees to other providers. Last week, DHHL urged SIC customers to switch phone and internet service providers to avoid the loss of telecommunications services due to SIC facing foreclosure by the federal government due to nonpayment of a major loan. 

From the DHHL news release:

SIC’s apparent plans to disconnect service violates the company’s contract with the Department of Hawaiian Home Lands (DHHL), which requires SIC to provide reliable service. SIC is also required to continue phone and internet service unless it gives regulators at the FCC and the Hawaiʻi PUC advance notice that it is unable to do so – and receives permission to stop services. DHHL is not aware of any such notifications to these agencies – and is working with these agencies to formulate a response. DHHL will continue to provide updates as the situation unfolds.

SIC has had multiple opportunities to work with DHHL and alternate service providers to keep services on for its customers. Unfortunately, SIC has chosen its current course of action instead. DHHL is working to ensure minimal disruption to affected beneficiaries. SIC is facing foreclosure by the federal government due to nonpayment of a major loan.

“Reliable phone and internet service is a lifeline for our communities,” said Lieutenant Governor Sylvia Luke in the latest DHHL news release. “It is unacceptable that Sandwich Isles Communications is planning to disconnect the services that its customers depend on with so little notice. We strongly urge Sandwich Isles Communications to transition Hawaiian Home Lands lessees to alternate service providers in an orderly and responsible process.”

HONOLULU (HawaiiNewsNow) – A Honolulu developer broke ground Thursday on the future home of new industrial space in West Oahu.

Developer Avalon Development Company started building “The Crossing” at the Kapolei Business Park on the corner of Kalaeloa Boulevard and Lauwiliwili Street.

The Industrial Warehouse Project will feature 28 warehouse units for small and medium businesses.

The concrete tilt-up buildings have high ceilings, clear spans, high power capacity, covered loading dock access, and other features sought by businesses.

Most importantly, the project is expected to provide much needed industrial space to local businesses.

Avalon hopes to open by June 2025.

Learn more about the project by clicking here.

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