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Fairpoint To Try And Weaken Verizon Deal Conditions
Wants deadline extended, and DSL coverage promises reduced
by Karl Bode 12:06PM Monday May 03 2010
Given the company all but imploded after taking on Verizon's DSL and landline networks in Vermont, New Hampshire and Maine, Fairpoint Communications obviously found it difficult to meet the broadband expansion conditions attached to the deal. Fairpoint will be meeting with Maine regulators next week in part to try and get an extension of the first phase of their agreed-to expansion plan from April to December 2010. As part of their deal with Maine regulators, Fairpoint agreed to:

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•Reduce the rate for basic home and business telephone service by more than $4 a month, for at least five years.

•Make high-speed Internet service available to 83 percent of all lines within two years, and 90 percent over five years.

•Freeze prices for current Verizon 768kbps DSL customers at $15 a month with a two-year contract and $18 with a one-year contract, for at least two years.

Fairpoint not only wants to push back the deadline, they want to reduce the percentage of lines they agreed would be capable of delivering DSL. Of course we're talking about last-generation DSL. Fairpoint customers can all but forget about substantive next-generation broadband investment for the time being (with the exception of a few FiOS deployments Fairpoint's renamed "FAST").

Curiously, while the company struggled to expand broadband (much less get their financials in order), they've had time to lobby against public/private Maine efforts by the University of Maine and a company named Great Works Internet -- designed to bring additional broadband to underserved areas.

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SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Boston, MA

Next!!

BOHICA! Yep - here's the 1st push back on the first phase. Next year, prices will be in the sights of FairPoint management... just wait and see!!
--
UNIONS: The anti-theft device for working people.

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

1 recommendation

Re: Next!!

said by SteveCon:

BOHICA! Yep - here's the 1st push back on the first phase. Next year, prices will be in the sights of FairPoint management... just wait and see!!
Fairpoint should never have agreed to the PUC conditions in the 1st place. The conditions just helped guarantee failure.
--
Are you happy with your rep in Washington, DC?

woody7
Premium
join:2000-10-13
Torrance, CA

hmmmmm....

And anyone dealing with Verizon should use this as their model.Verizon gets to dump it's debt, gets paid to do it, the consumers are left with the mess, priceless
--
BlooMe
Sammer

join:2005-12-22
Canonsburg, PA

1 recommendation

Re: hmmmmm....

Hopefully the West Virginia PSC is watching and will rule against the Frontier / Verizon deal. Frontier will end up with 98% of the landlines in WV and if something goes wrong (likely with the huge amount of debt Frontier will have) the entire state will be screwed.

swintec
Premium,VIP
join:2003-12-19
Alfred, ME
kudos:6
Reviews:
·Time Warner Cable
·VoicePulse
·Sprint Mobile Br..
·RapidVPS

This company..

This company is really a piece of work. Just when I thought the previous news stories about them could not get any worse, it does. I can't wait to see what our Maine regulators do to them.
--
Usenet Block Accounts | Unlimited Accounts

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

1 recommendation

Re: This company..

said by swintec:

I can't wait to see what our Maine regulators do to them.
Unfortunately what choice do regulators have? If they accept the deal, they look like they made a mistake in approving it. If they reject it, what recourse do regulators have? They can't fine them, as they have no money. They can't legally compel them to deploy it, as they don't have the money. They can't sell off the assets to companies that can as they likely don't have the legal authority to, nor is it likely a good division of the territory could be found.

telman

@frontiernet.net

Re: This company..

These are the issues the regulators should have dealt with before the deal was done. But like all politicians they have there price and can be bought by the highest bidder. Next Frontier will fail and enter bankruptcy just like the whole deal was set up for.
gorehound

join:2009-06-19
Portland, ME
probably not much will they do to fairpoint.i have no choice but use slime warner.we won't be seeing anything good out of fairpoint.
regulators probably are in the pay of fairpoint

OldschoolDSL
Premium
join:2006-02-23
Indian Orchard, MA

They'll get extended

They'll get extended cause their offer on paper sounds good.

1.) 80-90% of Main with DSL (people in office will not care if its new or old tech, dsl is dsl... so they'll see high speed)

2.) Price drops for everyone

3.) Current promotional price locked in for 2years.

Most people in Main (who do not know better) will also think this is a good idea.
--
HP Pavilion a6750f (tweaked)
Windows 7 Ultimate 64 * Ubuntu 10.04 64 * SuSe 11.2 64 * Mac OS Snow Leopard

"I could always tell you the truth, but would you believe?"
talz13

join:2006-03-15
Avon, OH

Re: They'll get extended

said by OldschoolDSL:

They'll get extended cause their offer on paper sounds good.

1.) 80-90% of Main with DSL (people in office will not care if its new or old tech, dsl is dsl... so they'll see high speed)

2.) Price drops for everyone

3.) Current promotional price locked in for 2years.

Most people in Main (who do not know better) will also think this is a good idea.
"Maine"

OldschoolDSL
Premium
join:2006-02-23
Indian Orchard, MA

3 edits

Re: They'll get extended

quote:
said by talz13 See Profile

"Maine"

:

Yes, I know.... My typed & dropped the E

Off topic: But I've been beta (alpha) testing a new auto-spell plug-in for Opera Browser. I can't tell you how many times I've had to edit my post to fix the job it does. I'm not use ot having to re-read everything I type.

(That one was my own doing though)
--
HP Pavilion a6750f (tweaked)
Windows 7 Ultimate 64 * Ubuntu 10.04 64 * SuSe 11.2 64 * Mac OS Snow Leopard

"I could always tell you the truth, but would you believe?"

telman

@frontiernet.net
This is the current corporate economic model in the good old USA. Promise them everthing and give them nothing.

otter04256

@rr.com
It's Maine moron - and some of us have fought the sale since day one. We were right - the taxpayers will end up paying the price for a shady deal. Might as well eliminate the ME PUC and give the savings to Failpoint to help spread slow speed broadband to the boondocks - where everyone is using satelite hookups.
Kirby Smith

join:2001-01-26
Derry, NH
Reviews:
·Fairpoint Commun..

Threaten Fairpoint with GWI

In my opinion, the Maine PUC should make it a condition that GWI can compete with Fairpoint in any way that they see fit to do so. That would force Fairpoint to "get with the program" or lose territory. When I had GWI DSL colo in Verizon's local CO, it was faster than Verizon's DSL, and dealing with tech support much easier.

kirby
Fairpoint FiOS, er FAST

morbo
Complete Your Transaction

join:2002-01-22
00000

Dear Maine,

You reap what you sow.

Signed,

The people that warned you.
brainlessdog

join:2005-11-30
Portsmouth, NH

I Have Seen Next Generation DSL and It Is Good!!!

I have seen Fairpoint's next generation dsl in action. 7mb down, 768k up. The new network is ready in parts of NH.
guppy_fish
Premium
join:2003-12-09
Lakeland, FL
kudos:4
Reviews:
·Verizon FiOS

1 recommendation

Re: I Have Seen Next Generation DSL and It Is Good!!!

said by brainlessdog:

I have seen Fairpoint's next generation dsl in action. 7mb down, 768k up. The new network is ready in parts of NH.
That is not next gen DSL, thats the old ASDL which from day one could do that speed, typically you need to be under 5K feet from the CO or RT
Sammer

join:2005-12-22
Canonsburg, PA

Re: I Have Seen Next Generation DSL and It Is Good!!!

7 Mbps is pathetic compared to the 30-50 Mbps now available in some areas but at least it's better than Frontier's 3 Mbps.
jjeffeory

join:2002-12-04
USA

Maine

Is this why DSL has been out for people in Farmington, ME for several days?

pistrix

@aig.com

Delighted

I'm delighted to learn that Fairpoint is actually moving forward, at whatever pace, with their DSL deployments.

Question for me is not whether 768 (or slower) is old technology. I am not worried about the speed as long as I have a few hundred kbps each way.

I am worried about the loop length limitations. I was hoping that more modern technology would have improved upon the 5,000 feet loop length limits of yore.

(Speaking as someone whose loop is probably about 5 miles from the nearest powered MUX and 15 miles from the CO)

Can anyone speak to whether Fairpoint will be deploying any alternate technologies for the distance-challenged users? I can't see how they would make it to 80-90% otherwise...
bac522

join:2003-08-04
Manchester, NH

Re: Delighted

said by pistrix :

I am worried about the loop length limitations. I was hoping that more modern technology would have improved upon the 5,000 feet loop length limits of yore.
xDSL can run up to 18,000 feet on standard POT's lines, but the biggest problems tend to be the quality of the copper. Plus T1 lines can cause interference problems with some DSL if it's on the same binder as your DSL line

said by pistrix :

(Speaking as someone whose loop is probably about 5 miles from the nearest powered MUX and 15 miles from the CO)
Doubtful...voice circuits can only run about 27,000 feet without an active electronics in place to repeat the signal...you mostly likely have a SLC hut closer then that, but are unaware of it.

Overall though, when done right there is no reason Fairpont couldn't deploy DSL in over 90% of their footprint. Fairpoint needs to not worry about areas where Comcast is, and just get areas up where Comcast isn't...even if it's old generation DSL...beats dial up any day of the week.

That would go a long way towards go will with those people who lack any type of broadband. Of course what sucks about that is that it leaves Comcast as the only game in town and monopolies are never a good thing!

jap
Premium
join:2003-08-10
038xx

1 recommendation

Verizon gets clear of this when?

What's the duration of liability look-back for Verizon on this deal?

If I recall properly condition of sale included VZ carrying some degree of liability for Fairpoint's operational success. If Fairpoint continues to get re-worked terms & extensions do those potentially free VZ of liability?

Serious questions that may be way off the mark. I simply do not know.