3 days ago
Last Thursday, the Federal Circuit ruled on a challenge brought by Sandwich Isles Communications Inc. (SIC) against the federal government over its request that SIC pay back tens of millions of dollars in subsidies received from aid pools. The court found, as the U.S. Court of Federal Claims previously had, that the tribunal lacked subject matter jurisdiction over the case.
The opinion explained that SIC was formed in the mid-1990s to provide telecommunications services to native Hawaiians. In 1997, SIC received a federal designation to do so and served rural communities in Hawaii by leasing capacity on an existing undersea cable. For certain leasing expenses, SIC sought and received millions of dollars in subsidies from the National Exchange Carrier Association (NECA) pool, a fund intended to support providers in high-cost areas.