Hawaii’s World




By A.A. Smyser

Tuesday, January 28, 1997


Prepare for rules
of the future or perish

(Last of four columns)

THE U.S. Telecommunications Act of 1996 and Hawaii's Act 225 of 1995 open up competition in telecom so widely that our state consumer advocate, Charles Toto, sees "chaos" reigning today. He wants to assure that when this Big Bang settles down there will be competitive cost-lowering, quality-raising service for all, not new monopolies.

Under what Toto calls "clean and acceptable" rules effected last June by the Hawaii Public Utilities Commission, dozens of companies are battling for turf. They raise immensely complicated issues for the PUC to referee. Examples: Now that GTE HawTel has to sell space on its lines to competitors what may it charge? How much system integration may be allowed between big guys like AT&T and GTE?

Basically, the federal/state rules end old monopolies. They allow international, national and intrastate providers to enter each other's fields. GTE HawTel is out in front. They create potentially rich opportunities for creative new and old guys.

Ah Jook Ku, a key sideline observer as the volunteer executive of the Honolulu Community-Media Council since it was formed in 1970, wishes the public were more aware of all the interplay. She has brought figures like Toto to brief council meetings.

State Sen. Carol Fukunaga, a key actor, wants to (1) see the state promote telecom for economic development, (2) bring our school students into the modern communications world and (3) help spread technology so that even remote places can benefit. The East-West Center's Meheroo Jussawalla, a close follower and participant in what's happening internationally, thinks it is very important to create the proper climate for advancement.

The state stumbled badly in 1989 when Hawaii Inc., a state agency to establish such a climate, was politically pressured to choose an executive with only narrow local experience over mainland candidates, one locally raised, who had a far better perspective on the vast opportunities of "the big picture." Several Hawaii Inc., commissioners quit in protest. Hawaii Inc. became no more than a state government service provider. It has been lapsed by the Legislature.

Fukunaga talks of incentives. Jussawalla thinks creating the right climate for investment is far more important.

Verifone, a California-based world telecom equipment manufacturer born in Hawaii, located a new production unit in China rather than here because the state didn't provide enough incentives. Such firms are so footloose they have no need to be loyal to any community. The giant Maui Supercomputer has suffered in attracting new businesses to the High Technology Park at Kihei because its services can be accessed from anywhere.

The state's High Technology Development Corp. has been successful in spawning and nursing along new businesses but most are small. Economic Development Director Seiji Naya is trying to woo more outsiders here.

GOVERNMENT can do a lot more for itself than it has. The Legislature has computerized its bill-filing and progress record-keeping. It has opened this up to public access. Departmental use is uneven. The governor's office is working on ways to spread the use, the benefits and the potential economies. Counties are waking up, too.

The University of Hawaii was first in Hawaii in the Internet field. It has led in wiring itself to the outside world and hooking in all its campuses statewide. It has won national recognition.

Looking at the community as a whole, Senator Fukunaga sees a lot of progress as "bottom-to-up." She means that lower level employees awake to high tech's possibilities have had to wake up their bosses. One wide-awake boss ventures that any company that expects to be doing business the same way as now three years from now won't be here three years from now.



This article is part four of four

Jan. 16: The Big Bang in communications
Jan. 21: High tech can be comfortable
Jan. 23: Schools lead convoy
Jan. 28: Prepare or perish



A.A. Smyser is the Star-Bulletin's contributing editor.
His column runs Tuesday and Thursday.




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