Hawaiian Telcom absorbs Wavecom

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The deal: Hawaiian Telcom in July announced it would purchase Wavecom Solutions for $13 million in cash.

It's been an interesting few years for Hawaiian Telcom. Just two years ago the incumbent telco was struggling to emerge from bankruptcy; in 2011, it seemingly sprang back to life, relisting on the Nasdaq and posting steadily increasing profits. More importantly, it set a course toward growth rather than survival, acquiring Honolulu-based CLEC Wavecom Solutions for $13 million in cash in July 2012.

Like many traditional providers, business services has been a huge boost for Hawaiian Telcom. It saw a 5.4 percent increase in business services revenues in Q1 2012, to $42.1 million. That climb continued, if slightly, into Q3, which reported a 1 percent year-over-year increase in business services revenues to $41.6 million for the quarter.

Wavecom brings a six-island network, comprised of subsea and terrestrial fiber, to Hawaiian Telcom's asset portfolio.

Why it's significant: It's all about the fiber. With Hawaiian Telcom looking to grow its IP-based business customer segment, having resources in place rather than upgrading or installing them is a big advantage.  

Ethernet, IP VPN, and dedicated Internet access services make up over 50 percent of Hawaiian Telcom's business data revenues, a number the telco will no doubt continue to try and capitalize on in the future.