Maui County’s public access network Akakū fighting to prevent significant cuts to its funding

Maui County’s public access television network Akakū, which provides news coverage of local government and a variety of other community programming and services, already is operating with a lean budget.

But now the nonprofit is battling to prevent the loss of hundreds of thousands in funding from cable company franchise fees, which the state says is due to a decision made by the Federal Communications Commission during Donald Trump’s first term as president.

In August 2019, the FCC issued an order stating cable company costs associated with building and maintaining the INET — a special communications network specifically for non-residential users, such as government agencies and first responders — must be included within the federally capped 5% franchise fees that cable companies pay to governments to use equipment on public property. 

The State of Hawaiʻi and several other governments across the U.S. sued to block the decision, but in 2021, the U.S. Court of Appeals of the Sixth Circuit ruled in favor of the FCC when it came to franchise fees.

Now, before Trump takes office again in January, the Hawaiʻi Department of Commerce and Consumer Affairs says it is trying to lock in long-term contracts with its cable providers.

“Given the upcoming change in the federal administration, there is a possibility that the FCC could impose further restrictions and constraints on cable franchising,” Randy Leong, cable television administrator with the department, wrote in a Dec. 5 letter to Akakū CEO and President Jay April. “It was therefore necessary to take decisive action and prepare for imminent impact.”

In November, the state renewed its franchise agreement with Spectrum on Kaua‘i that allowed the company to keep $200,000 or 1% of the gross revenues, whichever is greater, for operation and maintenance of the INET. In turn, the distributions for the department, PBS Hawai‘i and public, educational and governmental access organizations would each be reduced by one-third in 2026.

April is worried the same could happen in Maui County as the state works to hammer out details with Spectrum over a new 15-year contract for operations on Maui, Moloka’i and Lānaʻi. He estimated that under similar terms, Akakū stands to lose $150,000 the first year and about $225,000 annually after that.

“It would stretch us so thin that our services would be impacted,” April said. “We operate effectively with a minimum amount of money. Cutting into us is cutting into muscle — we have no fat.” 

Cable franchise and other fees that benefit public access organizations usually add 5 to 8% to each subscriber’s monthly bill and annually yield hundreds of millions of dollars in revenue for local governments across the country.

In Hawai‘i, the 5% in franchise fees are divided between its four public-educational-governmental access stations, including Akakū (3%), PBS Hawai’i (1%) and the Department of Commerce and Consumer Affairs (1%), according to April and the state. The exact distribution is up to the department director. 

Akakū brings in just under $1.5 million in revenue each year, with 80% coming from franchise fees and 20% from production, April said. This also includes contracts to broadcast public meetings for government bodies like the Maui County Council. Of the funding it receives from franchise fees, Akakū allocates 25% to its education partners, the University of Hawai’i Maui College and the state Department of Education on Maui.

In 2023, Akakū received just over $1.45 million in access operating fees and $139,149 in capital fees, according to the Department of Commerce and Consumer Affairs.

Akakū Holdings also owns a commercial center that it purchased in 2007 along Dairy Road in Kahului that includes Akakū’s offices and studios, but April said the revenue the property generates mostly goes toward maintenance and is not used on the nonprofit side. 

Now, it’s possible a significant part of that funding will instead go to the INET special communications network, which with certain exceptions includes the communications networks for schools, libraries and higher-learning institutions; public safety agencies such as fire, police and civil defense; and other state and county government agencies.  

Leong said INET is even more crucial now as remote work in both government and the private sector increases and residents use online government resources more often.

“Each of these trends highlights the critical need to preserve a robust and extensive INET, at the expense, if necessary, to PEG (public, educational and governmental) services,” Leong wrote.

Akakū is a PEG service, with three main channels serving more than 53,000 Spectrum Cable homes in Maui County, as well as a non-commercial talk-radio station, KAKU 88.5 FM. The nonprofit is often the only entity broadcasting community and government meetings on location on Maui, Moloka‘i and Lānaʻi. It also airs community-submitted videos and covers live, local events such as elections, and hosts in-person seminars on current issues or figures in the community as part of its monthly program, “Akakū Upstairs.”

April said Akakū also provided vital coverage during and after the 2023 Maui wildfires and daily updates during the COVID-19 pandemic. Akakū also trains community members and local nonprofits in using media.

“It’s all about community, so when you take this away … you not only diminish the community but you diminish the voice of the community,” April said. “This is a place where anyone can come here and talk story. It’s a beacon of free speech.” 

April says he does not accept the state’s explanation that the franchise renewal has to follow the federal decision. He said the state isn’t trying hard enough to protect funding and if Spectrum receives an agreement in Maui County similar to that on Kaua‘i, Akakū is prepared to fight the decision in court. 

“We’re going to have to use whatever means necessary to protect our interests,” April said.

Leong explained that given the 2019 FCC order and the return of the Trump administration to office, the state wanted certainty in how the INET contributions would be calculated for the next 15 years with Spectrum. He said it was “an issue that could not be avoided.”

Rebecca Lieberman, state government affairs director at Charter Communications, which operates the Spectrum brand, said the company has waited years for a more permanent agreement. 

The company has two franchises in Maui County — one for Lahaina and one for the rest of Maui as well as Moloka‘i and Lāna‘i. The franchises were granted to Charter’s predecessor in 1999 but expired in 2013.

A few years later in 2016, Oceanic Time Warner Cable, the franchise holder at the time, merged into Charter. Hampered by the 2019 federal changes and the pandemic that started in 2020, Charter has been operating under a series of short-term renewals since then, Lieberman said.

Meanwhile, competitor Hawaiian Telcom has secured a new franchise to offer cable to Maui residents, she said.  

Charter services more than 465,000 customers in Hawai’i and has a workforce of more than 1,110. According to Lieberman, Charter operates the only institutional network in Maui County on behalf of the state, which includes hundreds of miles of fiber optic installations that serve schools, libraries, government buildings and police and fire stations. In 2023, Charter paid more than $2 million in franchise fees from Maui County operations to Akakū, PBS and the state.

“We hope to reach an agreement that meets cable-related community news and interests on Maui, Moloka‘i and Lāna‘i,” Lieberman told the department during a public hearing broadcast by Akakū at UH-Maui on Dec. 9. “This agreement will need to comply with and take into account the rapidly changing marketplace for video services in which Charter operates. Moreover, we will need to ensure parity with Hawaiian Telcom’s initial franchise in Maui County to ensure neither provider is unfairly disadvantaged.” 

Akakū staff and community members, including Maui state Sen. Angus McKelvey, showed up to speak in favor of funding Akakū’s public programming during the hearing. McKelvey said Akakū is one of the few places providing “true, non-commercial content creation and access.”

“The internet doesn’t provide that anymore. … All of these providers inherently are commercially driven now,” said McKelvey, whose district includes parts of South and West Maui. “You don’t get enough clicks or subscribes, you don’t get enough views, you’re not going to be able to create revenue to stay valid and get your message out.

“And what happens is people sensationalize and twist things, and after the fire, we had all of these content creators driven by commercial needs putting out so much misinformation, it was ridiculous. Akakū, on the other hand, strove to create clear content and communication for the community.”

Akakū currently runs a “skeleton crew” that once numbered 23 but is now down to 12, and April said “any dime I lose means I have to cut something,” though it’s unclear whether that means jobs, services or closing one of the station’s critical offices.

Today is the last day to submit public testimony on Spectrum’s application. Written comments can be submitted by 4:30 p.m. via email to cabletv@dcca.hawaii.gov; via fax to (808) 586-2625; or via mail to the Cable Television Division, Department of Commerce and Consumer Affairs, P.O. Box 541, Honolulu, HI 96809.

The department did not have a timeline for a decision as of Tuesday.