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The Honolulu Advertiser
Posted on: Tuesday, December 2, 2008

Filing spurs feelings of apathy, fear

 •  HawTel’s efforts to compete hindered by rising debt load

By Curtis Lum
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser
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Honolulu residents had mixed reactions to yesterday's announcement that the state's largest telephone company had filed for Chapter 11 bankruptcy protection.

Many said they wouldn't be affected because they rarely used a Hawaiian Telcom landline. These residents said they used cell phones to make nearly all their calls and wouldn't miss Hawaiian Telcom if it went out of business.

But some landline customers feared they would be left with few options should Hawaiian Telcom fail to come out of bankruptcy or be forced to reduce service as part of its restructuring plan.

Still others yesterday expressed concern for the nearly 1,400 Hawaiian Telcom employees and feared they may lose their jobs or retirement benefits.

"It's very sad. I feel sad for these guys," said Tony Raiola, 55, who retired as a Hawaiian Telcom lineman in January after 30 years of service. "I hope they can pull it out."

Raiola, who works for a private contractor, stopped by the Hawaiian Telcom headquarters on Bishop Street yesterday and watched as his former colleagues walked in and out of the building. He said he could definitely sense a change in attitude among the workers.

"It's like a ghost town," Raiola said. "Before, everybody would be sitting out here, taking a break, chatting and stuff like that. But today, I don't see anyone I know."

Scot Long, business manager and financial secretary for the International Brotherhood of Electrical Workers, Local 1357, said management has said it has no immediate plans to reduce its workforce. The IBEW represents about 860 hourly workers at Hawaiian Telcom.

"(CEO Eric Yeaman) did not mention that they are looking at cutbacks," Long said. "But let me qualify that — at this time."

Long said he had been in "constant contact" with management over the past few weeks, and the bankruptcy filing came as no surprise. The company and union in September agreed on a new three-year contract, and Long said he was assured by management that it will do its best to honor the deal and has so far not asked for any concessions.

"The bottom line is they wanted to make sure they took care of their employees," Long said.

'BUSINESS AS USUAL'

Hawaiian Telcom would not comment yesterday. But in a statement issued on its Web site, the company said it has asked a Bankruptcy Court to allow it to "honor all customer programs, such as discounts and rebates, to continue to pay wages and salaries, and to continue various benefits for employees."

Brian Lee, assistant manager at Hawaiian Telcom's Kapi'olani Boulevard store, said he hasn't been notified of any layoffs and was told to operate "business as usual." His store has nine employees and handles from 300 to 400 customers daily, he said.

Lee, 31, said he wasn't surprised by the bankruptcy filing and said many other companies nationwide are having financial problems.

"I think we'll be OK," he said. "If everyone does their part, we should come out of it."

One of Hawaiian Telcom's problems over the past few years has been a dramatic decline in landline customers. In 2006, the company reported landline accounts fell by 6.3 percent from a year earlier.

If several interviews with O'ahu residents yesterday are any indication, that problem will continue.

Gregg Nakamura, 28, said he uses his cell phone exclusively and doesn't have a landline. But he said he does subscribe to Hawaiian Telcom's Internet service because it's more reliable in Palolo where he lives than Oceanic Time Warner Cable.

Nakamura said he has had very few problems with his Internet service and hopes that it will continue without interruption.

"I don't think service will be affected because of the bankruptcy filing. I just hope that business is gonna keep on running," he said.

Elly Nonaka, a 22-year-old University of Hawai'i graduate student, said she has a landline at home, but only because it is part of her condominium's intercom system. Without it, she wouldn't be able to let anyone into the building.

LANDLINE UNUSED

But Nonaka said she never uses her landline and would drop it if she could.

"I pay almost $50 a month, and I don't even use it," she said. "I don't have any phone numbers on it, so I don't even know who to call."

Carlos Benedito, 65, has a landline at his Waipahu home, but he also doesn't use it. He said the phone is used primarily by his wife, who uses it to take messages.

Benedito said he also became disgruntled with the service provided by the phone company.

"You have to wait and then they won't give you a specific time when they're going to come to do the job," he said. "Most of the time, they end up coming in the afternoon and you have to sit around all morning and wait for them."

Still, there are people who remain attached to their wired phone. Lynne Matusow of Downtown Honolulu said she doesn't own a cell pone because she doesn't want to be a "slave" to it.

But Matusow, who has been critical of Hawaiian Telcom's customer service, said she's concerned that residents would have very few options if the company can't get out of bankruptcy.

"I don't know of many places where you actually have competition among landlines," Matusow said. "I hope they can keep the service going."

Reach Curtis Lum at culum@honoluluadvertiser.com.