Sunday, May 3, 2009

Carlyle Group's Hawaiian Telecom Gets Less Regulation

What kind of public utilities need less oversight? How about a phone company that levered itself into bankruptcy with debts of $1.3 billion? Should they get a freer hand to charge customers?

The Hawaiian Legislature passed SB603, which gives Hawaiian Telecom a competitive advantage. HT can charge higher interconnection rates to competitors, without approval or documentation of costs.

Carlyle Group co-founder William Conway hates a level playing field. He likes them tilted in Carlyle's favor. Affiliate Hawaiian Telecom got Conway's wish via the state legislature.

HT is the latest fractal in America's governmental industrial monstrosity, where the politically favored profit handsomely in tilted markets.