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FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5
reply to CosmicDebri

Re: Doesn't seem to matter...

said by CosmicDebri:

Doesn't seem to matter how many people, watchdog groups, consumer friendly orgs, etc have to say on matters like this before they go through.... the majority of comments on this deal were it WOULD NOT work....
The state regulatory agencies made these problems a self-fulfilling prophecy. They put so many conditions on Fairpoint before allowing the sale and restricted them from charging higher rates, that Fairpoint, with the recession in full bloom, is now in a position where they can't cover costs. And now the moron regulators wonder why there are problems.
--
My BLOG .. .. Internet News .. .. My Web Page


pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
said by FFH5:

The state regulatory agencies made these problems a self-fulfilling prophecy. They put so many conditions on Fairpoint before allowing the sale and restricted them from charging higher rates, that Fairpoint, with the recession in full bloom, is now in a position where they can't cover costs. And now the moron regulators wonder why there are problems.
No one forced Fairpoint to take the deal.

If Fairpoint didn't think it could meet the conditions set forth by the state, it should have walked away from the bargaining table.
--
Blagojevich / Madoff 2012!


FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

1 edit
said by pnh102:

said by FFH5:

The state regulatory agencies made these problems a self-fulfilling prophecy. They put so many conditions on Fairpoint before allowing the sale and restricted them from charging higher rates, that Fairpoint, with the recession in full bloom, is now in a position where they can't cover costs. And now the moron regulators wonder why there are problems.
No one forced Fairpoint to take the deal.

If Fairpoint didn't think it could meet the conditions set forth by the state, it should have walked away from the bargaining table.
Maybe, just maybe, they thought they could swing it and grow their company. But the financial meltdown and the recession blew away their chances.

So what does the state do? Demand they stick to the deal and then try to tack on more costs. The regulators are sticking their heads in the sand. The result will be an eventual bankruptcy that will make things worse. Instead the regulators should face reality and let rates rise to cover the costs of beefing up support staff. But the chances of that are slim. The regulators answer to the pols, who would rather make populist proclamations about their outrage than actually do something.
--
My BLOG .. .. Internet News .. .. My Web Page


Dolgan
Premium
join:2005-10-01
Sun Prairie, WI
Reviews:
·Charter

1 recommendation

Their failure has nothing to do with rates, or the ability to raise rates. The problems stem from the poor transfer of data from VZ databases to the Fairpoint databases. The billing and order systems are FUBAR, and Fairpoint is paying the price for it.


tschmidt
Premium,MVM
join:2000-11-12
Milford, NH
kudos:9
Reviews:
·G4 Communications
·Fairpoint Commun..
·Hollis Hosting
reply to FFH5
said by FFH5:

They put so many conditions on Fairpoint before allowing the sale and restricted them from charging higher rates, that Fairpoint, with the recession in full bloom, is now in a position where they can't cover costs.
I think that is kind of backwards. Regulators were concerned with FairPoint's financial condition and got Verizon to lower price - forget exactly how much.

Current problem is technical not financial, however it may well become financial if they continue to bleed landline customers.

It appears FairPoint underestimated challenge of converting from Verizon systems to their own. Large IP projects like this always have teething problems. FairPoint made situation worse by downplaying problems and being very stingy with information. IMHO they could have actually increased customer loyalty by being more upfront with conversion status and letting everyone know where they were having problems and when they expected to have them corrected by posting info on web. Instead they played it close to the chest.

/tom