Computer World explores how Verizon's sale of its New England DSL and phone networks to Fairpoint communications is somewhat of a lose-lose scenario for consumers. On one hand, they're free of Verizon, who'd let much of that infrastructure deteriorate because they wanted to focus on more profitable regions of the country, and clearly had no interest in serving those customers. On the other hand, Fairpoint lacks the funds to really build out the network, and those States will obviously never see FTTH connectivity.
quote:From a financial standpoint, the Verizon/FairPoint deal is upside down. The deal has $88 billion Verizon selling 1.7 million landlines and its DSL business in Northern New England to the $270 million FairPoint, along with more than $1 billion in debt. The price that FairPoint ultimately pays for the business will be reflected in customer rates - and the debt it takes on will limit FairPoint's ability to bring the infrastructure into the 21st century, no matter what its intentions.
The real winner of course will be Verizon, who not only sheds a mountain of debt but gets a $600 million tax writeoff in the process. A number of States with large rural populations have complained that the telco has neglected the infrastructure in those States in order to focus assets on FiOS. Obviously Fairpoint's first order of business is to get out into the field and repair the network, something that will eat up their already limited assets.
Nobody wants to invest where there's little profit (Verizon), and those that actually do want to manage it do not have the resources (Fairpoint) - typical, nothing new here. Fairpoint is the Qwest of the east. -- Canada = Hollywood North
They will do just fine. The company has been preparing for this acquisition for over a year. I have FairPoint service in Washington State and it's excellent. Voice/IPTV and Internet. Plus they build FTTH for newer subdivisions. Something other rural telco's are not doing.
Give them a break. Verizon isn't interested in rural America. At least with FairPoint the northeast will get ADSL+2, bonded pairs for higher internet, IPTV, and where they can build new service, FTTH !
Yes. I have the service in Washington. They plan deployment of Occam and ADC in the northeast. They also use Actelis for bonded pairs. They will do just fine and subscribers will be happy with the improvements. Verizon wasn't planning any so why beat up a company that wants to improve the area ?
I do not work for them, but I am in the Telecom industry and do consulting. I think folks should give FairPoint a chance. They are improving service where they can afford to do so. People also need to remember that in rural america most homes have very old copper wiring inside the home. Fiber to the curb won't cure what is a problem inside the home.
FTTH sounds good...too bad Fairpoint and Verizon have spent 2 years convincing rural consumers that are not informed of upgraded technology that DSL is currently the latest and greatest while customers in populated areas can enjoy fiber to the home. Glad you have fiber, but we are never going to see it now.
2008-Mar-14 1:55 pm: ·
KoolMoe Aw Man Premium join:2001-02-14 Annapolis, MD
You were never going to see it anyway with VZ. Why not give Fairpoint a chance. Let them prove you right before you get too depressed... KM
That's why there are around 10-15 communities in southern NH that has FIOS right not. I'm not talking small towns either, but a few of the bigger cities in NH. Plus Verizon was planning expansion of FIOS to another 10 communities, with Manchester on the list. Manchester is the largest city by population in NH.
Verizon was also actively procuring franchise agreements with each area for FIOS TV as well. The only reason this all stopped was because of the sale to Fairpoint. If there was no sale pending I'm sure FIOS roll out would still be happening in NH.
This really is a lose/lose. I've had FTTH for a year and a half and who the hell knows what's going to happen with it once Fairpoint takes over. I certainly wont be able to get FiOS TV or phone, that's for sure. What a waste.