White elephant sale - dslreports.com

Author	All Replies
russotto join:2000-10-05 Collegeville, PA	White elephant sale Hmm. Looks to me like Step 1: Verizon dumps crappy infrastructure on Fairpoint for real cash. Step 2: Fairpoint sinks under weight of white elephant, goes into receivership. Step 3: Verizon picks up former assets for pennies on the dollar. All very simple... except for the question of why Fairpoint would agree to it.
russotto join:2000-10-05 Collegeville, PA	to forum · permalink · · 2007-06-28 18:03:54 ·
morbo Complete Your Transaction join:2002-01-22 00000 clubs: ·Charter Pipeline ·AT&T Southwest	said by russotto : All very simple... except for the question of why Fairpoint would agree to it. that part is simple too. you just have to think like one of them. why take a horrible deal like this? to make money. how will they make money? the ceo/executives, etc. will make a bundle. cut service. cut back a little on everything. the debt will slowly sink them. layoffs will be needed eventually. service will suffer. eventually, all the money has been milked outta this cow. bankruptcy/sale. to think like this is to have a true business mind: how to fuck over everyone for the sake of making some cash. someone else mentioned enron. i think it is appropriate to describe this thinking strategy as the same. it takes an Enron type to be able to take the cash and screw over such a large number of people.
	to forum · permalink · · 2007-06-28 19:56:06 ·
macaholic Premium join:2003-08-31 Jackson Heights, NY	Maybe the costs of managing a local phone network is cheaper for a company like Fairpoint rather than a complicated infrastructure company like Verizon. Fairpoint probably figure they may be able to figure a profit with current prices to customers... Ben -- "You don't subject minority rights to a referendum." Justice Minister Irwin Cotler of Canada
macaholic Premium join:2003-08-31 Jackson Heights, NY	to forum · permalink · · 2007-06-29 00:18:39 ·
morbo Complete Your Transaction join:2002-01-22 00000 clubs: ·Charter Pipeline ·AT&T Southwest	eh. i suppose it's possible, but highly unlikely. with verizon, at least they have economies of scale working for them. they have a huge footprint so they can get better prices for equipment. fairpoint will be quite a bit smaller so equipment prices will be higher. PREDICTION: i give them 6-7 years before bankrupty/sale due to failure to serve the area and make a profit.
	to forum · permalink · · 2007-06-29 08:21:04 ·


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