It’s time for Howard’s Illustrated Economics: the new economics of Internet cable networks across the Pacific.
Hawaii once had lots of airline service from Asia because transpacific planes needed to refuel. Then planes were built that would traverse the entire Pacific without refueling. Suddenly we lost our connections to Hong Kong and Singapore.
Something analogous is happening in the world of underwater fiberoptic networks. New Internet backbone networks from Hong Kong to the West Coast, and from Australia to the West Coast, do not plan to make landfall in Hawaii.
Now we know what Hawaiian Telcom invested in the SEA-US cable network, It was pay to play. That network, up and running since September, has fibers owned by Hawaiian Telcom.
We also caught a break with the Hawaiki network, now being laid, landing here.
It was designed before the economics changed.
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