DANIEL K. INOUYE HAWAII COMMITIEE ON APPROPRIATIONS, CHAIRMAN SUBCOMMITTEE ON DEFENSE, CHAIRMAN COMMITIEE ON COMMERCE, SCIENCE, ANDTRANSPORTATION COMMITIEE ON INDIAN AFFAIRS DEMOCRATIC STEERING AND COORDINATION COMMITIEE COMMITIEE ON RULES AND ADMINISTRATION tinitrd~tatrs~rnatr SUITE 722, HART SENATE OFFICE BUILDING WASHINGTON, DC 20510-1102 (202) 224-3934 FAX (202) 224-6747 September 1, 2011 PRINCE KUHIO FEDERAL BUILDING ROOM 7-212,300 ALA MOANA BOULEVARD HONOLULU, HI 96850-4975 (808) 541-2542 FAX (808) 541-2549 101 AUPUNI STREET, NO. 205 HILO, HI 96720-4221 (808) 935-0844 FAX (808) 961-5163 The Honorable Julius Genachowski Chairman Federal Communications Commission 445 12 th Street, S.W., Room 8-B201 Washington, D.C. 20554 Dear Mr. Chairman: On October 2, 2009, I sent a letter to you regarding my constituent, Sandwich Isles Communications, Inc.'s Petition for Declaratory Ruling (Docket No. 09-1333), and respectfully requested expeditious action. The Petition called for the reversal of the National Exchange Carrier Association's (NECA) decision to disallow expenses for an inter-island underwater fiber cable and terrestrial transport. The letter is attached for your reference. On September 29, 2010, your Wireline Bureau issued a Declaratory Ruling, partially reversing the NECA decision. It no doubt saved Sandwich Isles from bankruptcy, and allowed them to continue to provide a vital communications link to the residents and businesses on Hawaiian Homelands, particularly those in the very rural corners of our state. Sandwich Isles was compelled to request a reconsideration of the Bureau's decision because it simply could not survive at the subsidy level set in the ruling. We are fast approaching a year this month since the reconsideration request was filed, and a total of27 months since NECA rendered its initial negative decision. I need not tell you that these 27 months have resulted in escalating hardship on this Native Hawaiian telephone company. I understand that an order may be drafted for circulation and review by the Commission members shortly. I do hope that this is the case, as I hark back to my initial letter requesting expeditious consideration. 1225 The Honorable Julius Genachowski September 1, 2011 Page 2 In the course of these 27 months, Sandwich Isles came upon NECA's Cost Issues Manual which is intended to provide for the "uniform treatment of issues in compliance with the FCC's rules and orders to ensure equitable settlements among NECA pool members." In complex cases, there appears to be a provision that allows for continued payment in accordance with the existing characterization while the issue is being clarified or resolved by the FCC. Such a rules makes good sense as it helps companies from being starved into bankruptcy, while awaiting the FCC's disposition of a particular matter. Ifthis is in fact the case, I would respectfully request, within applicable rules and regulations, that consideration be given to its immediate application, pending resolution by the Commission. Thank you for your attention to this matter. DANIELK. I United States DKI:jsd Enclosure DANIEL K. INOUYE HAWAli COMMITIEE ON APPROPfliATIONS. CHAIRMAN SU8COMl.tIITU Otl DH£"S[. CtllU~M"'1l COMMlTIEE ON INDIAN AFFAIRS DEMOCRATIC STEERING AND COOHDINATION COMMITIEE COMMi7T"E ON RULES liND ADMINISTRATION JOINT CQMMITIEE ON PfUNTING ':lanited~tgteg~engte SUITE 722, HART SENATE OFFICE BUILDING WASHINGTON, DC 20510-"02 (202) 224-3934 FAX (202) 224-6747 October 2, 2009 FILE COpy PRINCE KUHIO FEDERAL BUILDING ROOM 7-212. 300 ALA MOANA BOULEVARD HONOLULU, HI 96850-4975 laoS) 541-2542 FAX (80S} 5<:1-2549 101 AUPUNI STREET. NO. 205 HILO. HI 96720 (80S) 935-