Friday, October 14, 2005

Summary of Hawai'i DCCA's CAC meeting

UPDATE: Summary of Hawai'i DCCA's CAC meeting

State gives Time Warner a rent break; State delays new channel at Time Warner's request; Dowling is building imbalance in Maui's media

October 13, 2005 (Honolulu) - A public meeting of the Hawaii Department of Commerce and Consumer Affairs (DCCA) Cable Advisory Committee was held in Honolulu on Thursday October 13, 2005. The agenda was posted online at http://www.hawaii.gov/dcca/areas/catv/ link to Cable Advisory Committee (CAC) - here are informal notes and three newsworthy items from the meeting.

The CAC meeting included an announcement by DCCA's cable administrator Clyde Sonobe regarding the State's most recent action to reduce franchise fees assessed on Time Warner. Hawaii's State Ethics Commission previously found that Sonobe's spouse is employed by Time Warner's telecom subsidiary in Hawaii and any action or non-action taken by Sonobe that benefits Time Warner telecom could create a real conflict of interest for Sonobe. Local consumer groups have already pointed out the appearance of conflict in Sonobe's case - as Sonobe is the nominal State regulator of Time Warner's statewide monopoly cable TV operator. Cable franchise fees are assessed as partial rent for Time Warner's use of the public rights of way. The State action announced by Sonobe was taken unilaterally at the State's initiative.

State gives Time Warner free rent and cuts regulation

Pursuant to a decision and order dated October 5, 2005, State cable administrator Clyde Sonobe announced at their CAC meeting on October 13, 2005 that DCCA will reduce funding for cable regulation and no longer assess Time Warner full rent on the public rights of way that are used by Time Warner for commercial activity including broadband internet service and cable TV.

In spite of inadequate regulatory practices that fail to protect consumers and represent the public interest, the DCCA will reduce it's cable regulatory oversight resources and defer collection of cable franchise funds that are clearly needed. The State has never conducted a management review and audit of the DCCA's cable TV division, nor a comprehensive cable franchise compliance review of Time Warner's cable and telecom subsidiaries in Hawaii.

see http://www.hawaii.gov/dcca/areas/catv/decisions_orders/files/323.pdf

In a related development on the DCCA's agenda:

State delays new 'Olelo access TV channel, punts again to Time Warner

Pending reconsideration, DCCA's cable administrator Clyde Sonobe announced today that the launch of a long awaited community access TV channel for Honolulu will be further delayed. The State's most recent action delaying the channel fits a pattern of deference to Time Warner that has been the hallmark of Hawaii's cable TV regulation for the past decade.

http://www.hawaii.gov/dcca/areas/catv/decisions_orders/files/320.pdf

and

http://www.hawaii.gov/dcca/areas/catv/decisions_orders/files/321.pdf

see also Clyde Sonobe letter to Akaku dated May 25, 2005.

Finally:

Everett Dowling joins State cable deliberations

Legal counsel for politically connected land developer Everett Dowling, Sandie Wong attended the State's Cable Advisory Committee meeting in Honolulu on October 13, 2005. Dowling's counsel sat directly behind Maui Community College representative Mike Albert and conferred with him during the meeting. Albert offered written and oral testimony at the hearing that charged Akaku: Maui Community TV with "malfeasance" and other wrongdoing. No Akaku representatives were present.

All for now - watch for videotape of the meeting from Jeff Garland who also testified at the hearing.

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This summary provides informal notes, no warranty is implied nor intended.

Sean McLaughlin

Hawaii Consumers