|reply to FFH |
Re: Doesn't seem to matter...
said by FFH: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.
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.
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.