When thinking about Hawaii's treasures, many people conjure up miles of sandy beaches dotted with palm trees and kissed by the sparkling blue ocean. Cincinnati Bell, however, envisions miles and miles of fiber that supports sophisticated cloud and IT services for residential and business customers dwelling on or around the Aloha State.
From Remote Beauty to Always On...
Kauai County is one of the more traditional treasures found in Hawaii. (Source: Braden Jarvis Unsplash)
With the acquisition, Cincinnati Bell acquires Hawaiian Telcom's extensive inventory in fiber -- a resource in which the smaller provider had heavily and continually invested through Q3 2017, its last quarter reporting as an independent company. The Hawaiian provider's expertise in cloud services also continued to attract new business customers, said Scott Barber, Hawaiian Telcom CEO, during the Q3 2017 earnings call in November 2017, according to the Seeking Alpha transcript.
"The number of business Internet subscribers on packages with 50 megabits to 1-gigabit fiber speeds grew 38% year-over-year. To address this growing demand for bandwidth and cloud adoption in our third quarter, we continue to leverage our existing fiber footprint that was initially built for residential consumers to fiber-enable an additional 800 targeted small business addresses, providing them with access to a market-leading 1 gigabit Internet service," he said.
"This brings our total fiber-enabled small business addresses to approximately 9,400 statewide at the end of the third quarter. We continue to see customer accelerated broadband usage which drove increased take rates and customer upgrades to higher bandwidth products in these fiber areas," Barber added. "So by the end of this year ... we expect to fiber-enable over 1,300 additional business addresses while continuing with pair bonding and the initial deployment of technology such as Gfast to increase speeds to areas where it makes sense."
Cincinnati Bell & Hawaiian Telcom Meld City Smarts With Island Initiative
Fiber and Gfast service multi-dwelling units in cities such as Waikiki. (Source: Colton Jones, Unsplash)
With the acquisition, Cincinnati Telecom increases its fiber density -- a critical component of 5G and business services, said Leigh Fox, president and CEO of Cincinnati Bell, in a statement.
"Today marks a tremendous milestone for Cincinnati Bell and Hawaiian Telcom as we take an important step together toward expanding our portfolio of next-generation fiber offerings and securing fiber density value for our customers and shareholders," said Fox said. "Fiber density remains a key market differentiator in an increasingly competitive environment. By allowing us to better anticipate and capitalize on the fast-growing demand for strategic fiber offerings, this combination positions our company to be at the forefront of innovation in telecommunications and establishes a platform for future growth."
In addition to fiber across the Hawaiian islands, the provider's infrastructure and expertise extends into direct access to the SEA-US Trans-Pacific fiber cable that links Asia and the United States. This gives the newly expanded Cincinnati Bell exposure to the fast-growing Asian market for its array of offerings, from entertainment and cloud to IT services and broadband, including the continued buildout of Hawaiian Telcom's Next Generation Fiber Network.
Under terms of the acquisition, Hawaiian Telcom will operate under its own name, and will be locally managed and operated. John Komeiji is president and general manager; for almost the past decade, Komeiji served as Hawaiian Telcom’s chief administrative officer and legal counsel.
Cincinnati Bell also added two Hawaiian Telcom board members: Walter Dods, Jr. and Meredith Ching. Dods has served in numerous roles on the Hawaiian Telcom board since 2005. Ching is senior vice president -- Government and Community Relations at Alexander & Baldwin (A&B).
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Fast, reliable broadband is essential to how we live, work and play today – and the upcoming arrival of 5G will only further increase demand and reliance on fiber infrastructure. Already viewed by consumers as intolerable, delays, outages or the regular maintenance difficulties associated with operating a network will become further exacerbated when residential subscribers further rely on connected devices for day-to-day life. Just as providers deploy network automation tools to reduce operational issues, they must take similar care to manage consumer expectations when they roll out fiber or new services. This webinar features leaders who will discuss how to manage marketing and consumer expectations at every stage of the network lifecycle. Marketing professionals, c-level executives and policymakers interested in drumming up fiber envy should attend.