 pnh102Reptiles Are Cuddly And PrettyPremium
join:2002-05-02
Mount Airy, MD | reply to Linklist
Re: Doesn't seem to matter... said by Linklist: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.
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 LinklistPremium
join:2002-03-03
Longport, NJ
kudos:5
1 edit | said by pnh102:said by Linklist: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.
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 DolganPremium
join:2005-10-01
Sun Prairie, WI
 ·Charter
| 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. |
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