Cutback in federal funds might doom phone service provider

By Alan Yonan Jr.

POSTED: 01:30 a.m. HST, Jul 01, 2012

~~Honolulu-based Sandwich Isles Communications said it would be dealt a severe blow if it has to comply with new regulations that limit the federal subsidies it receives for providing telephone service to customers living on Hawaiian Home Lands.
New Federal Communications Commission rules that go into effect Monday will reduce by about 70 percent the amount Sandwich Isles can draw from a ratepayer-funded account that helps cover the expense of running phone lines to rural and remote areas. Sandwich Isles, which had been receiving about $830 per customer per month from the Universal Service Fund, would see that amount capped at $250 per line per month at the end of a three-year phase-in period, according to the FCC. Sandwich Isles filed for a waiver from the new regulations, but the FCC has not yet ruled on the request.
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Honolulu-based Sandwich Isles Communications said it would be dealt a severe blow if it has to comply with new regulations that limit the federal subsidies it receives for providing telephone service to customers living on Hawaiian Home Lands.

New Federal Communications Commission rules that go into effect Monday will reduce by about 70 percent the amount Sandwich Isles can draw from a ratepayer-funded account that helps cover the expense of running phone lines to rural and remote areas. Sandwich Isles, which had been receiving about $830 per customer per month from the Universal Service Fund, would see that amount capped at $250 per line per month at the end of a three-year phase-in period, according to the FCC. Sandwich Isles filed for a waiver from the new regulations, but the FCC has not yet ruled on the request. Login for more...