Hawaiian Telcom took a step closer to being acquired by Ohio-based Cincinnati Bell on Friday, receiving one of two necessary Hawaii regulatory approvals.

The approval requires Hawaiian Telcom’s proposed new owner to maintain a current low-cost internet service offer and spend at least $20 million expanding and improving the company’s network.

The state Department of Commerce and Consumer Affairs issued the order under which it conditionally approved Cincinnati Bell’s planned acquisition of Hawaii’s largest technology and telecommunications firm.

Cincinnati Bell and Hawaiian Telcom announced their plan in July and expect the $650 million sale to close in the second half of 2018.

The approval by DCCA’s Cable Television Division is one of several state and federal approvals needed for the acquisition to happen.

Other conditions DCCA is imposing include providing at least 15,000 homes with new or upgraded network lines within four years of the takeover, honoring Hawaiian Telcom labor agreements, maintaining local management and not disrupting or terminating service.

The internet service promotion to be maintained offers connection speeds of up to 7 megabits per second for downloads and up to 1 Mbps for uploads at $9.95 per month.

Another condition in the order, which is available at cca.hawaii.gov/catv, requires Hawaiian Telcom to deploy a mobile app for public WiFi throughout the state via partnerships with Hawaii businesses within two years of its acquisition.

DCCA’s approval was given following a public hearing earlier this year.

“Upon an extensive review of the merger transaction application and related filings, which included a public hearing, we determined that the proposed transfer of (Hawaiian Telcom’s) Oahu cable franchise to Cincinnati Bell, with the conditions imposed on by the state, is in the public’s best interest,” Cable TV division Administrator Ji Sook “Lisa” Kim said in a statement. “As set forth in the decision and order, Cincinnati Bell is committed to improving and extending (Hawaiian Telcom’s) networks in Hawaii and continuing to provide a low-cost internet option for Hawaii’s consumers.”

Scott Barber, Hawaiian Telcom president and CEO, said in a statement that the approval moves the company closer to becoming stronger and more successful.

Leigh Fox, president and CEO of Cincinnati Bell, thanked DCCA and said the approval process is moving forward expeditiously.

Last month the acquisition and merger deal cleared a federal Hart-Scott-Rodino Act review. Hawaiian Telcom shareholders also approved the deal, under which the company will keep operating under its current name.

The state Public Utilities Commission and the Federal Communications Commission have yet to reach their decisions.