Carlyle Group and Verizon are doing a phone line hula-hoop. And at the end of it, Carlyle will give Verizon $1.65 billion for Hawaiian local loops, according to Business Week. Carlyle’s William Kennard … yup the same genius behind the messy Telecom Act of 1996 is spearheading this investment, despite have a very checkered record of investing in telecom. Verizon Hawaii has 707,000 lines in Hawaii, 1,700 employees, $610 million in revenues and operating income of $58 million. Look when a Bell company is willing to sell local lines, its almost like Osama switching faiths. But then Carlyle’s friends in the Beltway have always saved the company’s butt, when things start to go wrong.