Connect Kākou is the Hawaiʻi statewide broadband initiative led by the University of Hawai'i' Broadband Office (UHBO) to ensure people from all walks of life have reliable and affordable access to high-speed Internet. The name “Connect Kākou” was chosen to reflect Hawaii’s goal of using high-speed internet to connect everyone across the state. The Hawaiian word “kākou” is used to convey the idea of “all of us,” and underscores the sense of collective responsibility and unity that this initiative represents. In Hawai'i's Initial Proposal Volume 2 for Broadband Equity, Access and Deployment (BEAD) Program funding, the Connect Kākou initiative plans to expand affordable broadband to every person in Hawai'i.

Affordability is a key factor in broadband adoption among income-constrained and low-income individuals in several covered populations in Hawai'i. A May 2023 Aloha United Way report found that  “the minimum income needed to pay for basic essentials as a family of four in Hawaiʻi has ballooned to $104,052 a year.” The report goes on to say that 12 percent of residents live below the federal poverty line. In 2023, Honolulu County conducted a survey among community members through its Oʻahu Digital Equity Coalition (ODEC), which indicated that 26 percent of those surveyed were unable to afford Internet service.

According to 2022 American Community Survey (ACS) data, roughly 17 percent of Hawaiʻi residents live in low-income households, with percentages varying across the counties. The Hawai'i Digital Equity Plan notes that the statewide total covered population percentage has grown over the past few years, with the 2015-2019 5-year ACS data showing 14 percent of Hawaiʻi residents within low-income households. In both data sets, Hawaiʻi County has the highest amount of low-income residents, with over one-fifth of the population living in low-income households.

Given that the cost of living in Hawaiʻi is the highest in the nation, the Hawaii Broadband and Digital Equity Office (HBDEO) acknowledges the large number of households across the state that are not low-income but experience economic challenges. Over 40 percent of households across the state are Asset Limited, Income Constrained, Employed (ALICE) or in poverty. Maui County exhibits the highest rate of households under financial strain with nearly 50 percent ALICE or in poverty.

Hawaii’s challenge involves ensuring all residents—from urban to rural areas, from Niʻihau to Hawaiʻi Island, from keiki (children) to kūpuna (elderly)—have meaningful access to reliable and affordable high-speed Internet. To achieve this, Hawaiʻi must lay the foundation by investing in quality broadband infrastructure: first mile (transpacific), middle mile (inter-island), and last mile (to the home) connections.

The mix of the high cost of living and poverty in the state makes high-speed internet access a luxury for too many Hawaiians. As high-speed internet networks are deployed in Hawaiʻi, all residents of Hawaiʻi can also afford service. As noted in the State of Hawaiʻi Digital Equity Plan, some families, have to choose between the monthly cost of Internet or other basic necessities. This affordability barrier perpetuates the digital equity divide in Hawaiʻi and affects upward mobility in the state for those whose access to the internet is an opportunity to escape from the low-income downward spiral.

Hawai'i's BEAD Low-Cost Broadband Service Plan

To address the affordability barrier, BEAD subgrantees in Hawaiʻi must offer a low-cost broadband service option as defined below:

• Consistent with the spirit and intent of the Federal Communications Commission's Affordable Connectivity Program (ACP), costs no more than $30 per month, inclusive of all taxes, fees, and charges with no additional non-recurring costs or fees to the consumer;
• Allows eligible consumers to apply the ACP  (or successor program) subsidy to the service price to achieve “net free” access;
• Provides the typical download speeds of at least (preferably better than) 100 Megabits per second (Mbps), typical upload speeds of at least 20 Mbps, and typical latency measurements of no more than 100 milliseconds;
• Is not subject to data caps, surcharges, or usage-based throttling, and is subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the participating subgrantee must adhere;
• In the event the provider later offers a low-cost plan with higher speeds downstream and/or upstream, the provider shall permit eligible subscribers who are subscribed to a low-cost broadband service option to upgrade to the new low-cost offering at no cost and is notified by the provider of the new low-cost offering;
• At any time during the federal interest period for the BEAD program, and no more than once per calendar year, may request a modification to the per month low-cost service option price up to a not-to-exceed amount of $70 per month inclusive of all taxes, fees, and charges with no additional non-recurring costs or fees to the consumer. The provider must provide evidence to the state that its proposed low-cost service option price in excess of the $30 per month threshold is based on actual operational costs, that include necessary costs related to common infrastructure across its service area contained within the state of Hawaiʻi, and that the documented costs cause it to operate at an unsustainable loss. Consistent with already existing and historical practices in Hawaiʻi, any of the provider's proposed rates must be the same across any of its service areas within the State of Hawaiʻi, i.e. the provider will not be permitted to charge a higher differential rate to less desirable service locations for its low-cost service option. Any such low-cost service option price in excess of the $30 per month threshold is subject to approval and acceptance by the State. Providers may decrease costs to consumers and provide discounted offerings at any time, without requesting approval from the state;
• Make households within BEAD-funded service areas aware of the availability of the low-cost plan via public awareness campaign activities;
• Clearly displays and easily allows the consumer to subscribe to this low-cost service option on the provider’s website or other provider interface (i.e., no dark design patterns to make the option difficult to find and subscribe to).

Hawai'i's BEAD Middle-Class Affordability Plans

Hawaii’s market has historically suffered from a high cost and very limited availability in the first and middle mile. Even though mostly limited to a (wireline) duopoly, Hawaii’s consumers have benefitted from reasonable pricing. The hidden hurdle continues to be very high prices for high-capacity services to enterprises. This hidden hurdle has also limited the number of competitive ISPs serving this market.

Hawaii’s core strategic framework includes prioritized investment in critical middle-mile infrastructure with the desire to address the age and brittleness of inter-island lifelines, and to increase and diversify the middle-mile supply to lower capital costs of all carriers and ISPs, including reducing the cost of entry into the market for new competitive providers. The intended market impact will lower the capital and operating costs of existing and potential new providers, to help support downward pressure on consumer and enterprise prices. While lowering costs by themselves will not guarantee lower prices, the expected outcome relies on energizing the competitive market, and improving the customer value proposition (i.e. lower prices and/or higher speed availability). Enterprises (and government) will also directly benefit from lowered wholesale pricing levels, with similar downstream benefits to consumers.

Hawaiʻi is investing the majority of its U.S. Treasury Coronavirus Capital Projects Fund (CPF) allocation to support the construction of a new inter-island submarine fiber optic cable system. In addition to the CPF investment, Hawaiian Telcom is the recipient of a Middle Mile Competitive Grant award that will also incrementally improve both subsea and terrestrial middle mile capacity in its core networks. These efforts together have already resulted in significant interest by multiple, prospective trans-Pacific system projects looking to land their systems in Hawaiʻi. While these trans-Pacific systems would not see direct public investment, collective work in cable landing stations and carrier-neutral interconnection facilities significantly reduces project and financial risks and uncertainties for those systems.

The largest portion of the overall federal investments will directly expand last-mile high-speed access for all residents, and include layered, wrap-around services to support digital literacy, Internet adoption, and workforce development. The expanded last-mile coverage will support an incremental increase of adoption and subscriptions at the edge of carrier and ISP coverage, and the layered, wrap-around services will increase overall adoption across the population by overcoming legacy fear, uncertainty
and doubt for the segment of residents that have access, but remain unconnected to the Internet. Affordability, even at low consumer prices, continues to be a significant hurdle for those residents who are financially challenged.

The final policy is that the public sector will generally NOT enter into competition with commercial ISPs.

Ongoing CPF middle mile investments are expected to influence the competitive market, lowering prices for both ISPs and the public—as well as making commercial investment more attractiveʻi. Increasing the market potential by incrementally improving take-up rates and the general digital literacy of the population will help fuel expansion opportunities for incumbents as well as new providers.

Residents, businesses, and government operations throughout the state will benefit from lowering the cost of internal connections and access to an increasingly competitive telecommunications market. By taking the initiative and building new key broadband routes to previously unserved areas, Hawaii’s direct-service market capacity will expand and stimulate new economic prospects. World-class, high-speed Internet connection available to all Hawaiʻi residents empowers the potential export of local products, services, and talent. Opportunities include Hawaiʻi-originated research and commercial entities and peer-level collaboration with existing and new entities from regional and global sources.

Connecting the Unconnected

There are approximately 10,500 locations across the state that potentially qualify for BEAD according to the FCC’s National Broadband Map. And as remote work, online learning, telehealth services, and virtual interactions became essential, individuals and communities faced immense obstacles in getting digitally connected. Access to affordable, high-speed Internet, connected devices, digital literacy training, and support programs for communities will empower Hawaiʻi’s residents and create a more equitable and prosperous future.

Additional Coverage on Hawai'i Broadband Priorities

• Aloha Spirit Inspires Hawai'i Digital Equity Plan
• Keiki to Kupuna, All Hawaiʻi's Residents Need Broadband

See the latest Hawai'i broadband news

More in this Series

• Louisiana's Plan for Affordable Broadband
• Pennsylvania's Plan for Affordable Broadband
• Washington State's Plan for Affordable Broadband
• The Kansas Affordability Plan
• Affordable Broadband for Nevada
• Will BEAD Networks Deliver Affordable Broadband for All in West Virginia?
• Delaware Wants to be the First State to Achieve Universal Broadband—Affordability is a Key Component
• Eliminating the Digital Divide in the District of Columbia Requires a Focus on Affordability
• A Plan to Bridge the Digital Divide in Colorado
• Ensuring All Hoosiers Have Reliable and Affordable Broadband
• Increasing Broadband Availability, Accessibility, and Affordability for the Benefit of All Utahns
• The Connection Between Affordability and Internet Adoption in Oregon
• How Maryland is Working to Make Broadband More Affordable
• Arizona Aims to Make the "6th C" More Affordable
• Illinois Committed to Changing the Broadband Affordability Picture
• Broadband Affordability is First and Foremost in Maine
• Universal Access to Affordable, Reliable Broadband in Kentucky
• Hawai'i is Working to Connect All to Affordable Broadband

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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