I’m very happy to see that the NECA has raised the same concerns as I have regarding SIC’s ownership and affiliates using their new inter island fiber-optic network (the NECA’s full comments are available here, Sandwich Isles comments are available here).
I previously blogged about the ownership of this new inter-island submarine fiber-optic network here.It seemed at the time the new ownership of this network, Blue Ivory Hawaii Corporation, was simply a shell company for Sandwich Isles Communications.
The latter assertion gained more credence today when I read this part of the NECA’s comments.
“Notwithstanding, NECA has raised concerns on this issue with Sandwich Isles, based on the fact that the Paniolo Cable Company (owner of the leased cable) is now owned in its entirety by Blue Ivory, LLC. Blue Ivory, which is held by the children of Albert S.N. Hee, President of Sandwich Isles, in “three private trusts, the Adrianne H.R. Hee Irrevocable Trust, the Breanne E.R. Hee Irrevocable Trust, and the Charlton E.R. Hee Irrevocable Trust. Each trust holds shares of Blue Ivory Hawaii for the benefit of the named beneficiary.”
The NECA also raised another significant concern regarding Sandwich Isles Communications affiliate company ClearCom use of this new fiber-optic network.
“Sandwich Isles asserted that the cable would only carry regulated traffic and services for the first 5 years of operation. Notwithstanding Sandwich Isles’ position, a 2002 Forbes profile on Albert Hee (President of Sandwich Isles) indicates that Sandwich Isles may have plans to allow ClearCom, its sister company and a competitive local exchange carrier (CLEC), to use the Sandwich Isles network.”
