State Conditionally Approves Hawaiian Telcom, Cincinnati Bell Merger
The Hawai‘i Department of Commerce and Consumer Affairs’ Cable Television Division conditionally approved the transfer of control of Hawaiian Telcom’s cable franchise to Cincinnati Bell Inc. on Friday, Dec. 8.
The development is a step in the process of satisfying the closing conditions of Cincinnati Bell’s combination with Hawaiian Telcom Holdco, Inc.
“We are pleased that our merger approval process is moving forward expeditiously and thank the DCCA for their leadership,” said Leigh Fox, President and Chief Executive Officer of Cincinnati Bell. “The DCCA’s approval is a significant step forward in the combination of Cincinnati Bell and Hawaiian Telcom, a merger that will accelerate our overarching strategy to create a diversified and balanced revenue mix by expanding our high-speed, high-bandwidth fiber optic network while building a complementary IT solutions and cloud services business in Cincinnati and Hawai‘i.”
Scott K. Barber, President and Chief Executive Officer of Hawaiian Telcom, commented, “This approval moves us one step closer to creating a stronger, more successful communications and technology company focused on serving our local customers with industry-leading products and services. The combination will ensure the continued build out of our Next Generation Fiber Network, enabling expanded access to high-capacity broadband and TV service across Hawai‘i.”
As outlined in the DCCA’s Decision & Order No. 370, Cincinnati Bell has committed to:
- investing $20 million dollars to improve and build out Hawaiian Telcom’s Next Generation Fiber Network statewide within four years of the close of the merger;
- continuing local management of Hawaiian Telcom in Hawai‘i, and honoring its union labor agreements; and
adhering to laws and rules regarding customer privacy as well as open Internet.
- In addition to this critical milestone, last month the merger cleared the Hart-Scott-Rodino Act review period and Hawaiian Telcom shareholders overwhelmingly approved the combination.
Regulatory review processes are underway with the Federal Communications Commission and the Public Utilities Commission of the State of Hawai‘i. The merger approval process continues to progress as anticipated and the transaction is expected to close as soon as all regulatory approvals and other customary closing conditions are met.