Hawaii Telecom “…knew the systems weren’t going to work when they turned them on…”

Can you hear me now?

…The specter that hangs over this is Hawaii Telecom. In that state a consulting firm paid $1.6 billion for Verizon’s landline service in 2005, only to collapse into bankruptcy because of myriad problems with billing and other “back-office” systems.

Bailey said the parallels are less than they seem, however.

In Hawaii, they knew the systems weren’t going to work when they turned them on. Here, the overall performance of the systems, although it’s not adequate, is better than a complete failure,” she said.

In Hawaii, they couldn’t even bill, so they couldn’t get any revenue in – their cash flow was nothing…”

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One Response

  1. I e-mailed Kate Bailey about her comments. As I don’t recall reading anywhere that Carlyle and Bearing Point knew
    beforehand that HawTel’s 80 back office systems would not work.

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