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Fairpoint Makes Poor First Impression In New England
Running massive branding effort while struggling to offer 911 service

User Dominokat See Profile writes me to note that Fairpoint Communications is under fire in Maine after their 911 systems malfunctioned nearly a half-dozen times over the last few months, several times for at least half an hour. According to the Portland Press Herald, "software and customer service problems" were to blame for the outages, and at least one county is redirecting 911 calls to the State police dispatch system until the problems are fixed.

I'll state the obvious and say this isn't a great start for Fairpoint, who is trying to make friends in the states of Maine, New Hampshire and Vermont after buying Verizon's DSL and landline networks. The deal was great for Verizon, giving them a $600 million tax-write-off while eradicating more than a billion in debt. Fairpoint however went from a company with 300,000 landline customers to one with nearly 2 million in short order (and plenty of debt).

Fairpoint's first quarter earnings dropped by 34%, and the company is obviously picking up the tab for their 911 screw ups. The Press Herald also notes they're running an expensive marketing campaign in New England to, ironically in the face of 911 errors, build customer trust:
quote:
Nevins would not disclose how much FairPoint will spend on its branding effort. However, he described the campaign as a long-term project that is critical to the company's effort to establish itself with customers in a competitive market. "It's a significant amount of money," he said, "and it's a very important part of what we're doing right now because of our newness to much of the market here in northern New England."
I'll also note that the Press Herald says the Maine PUC didn't bother to explore Fairpoint's ability to offer 911 service before approving the deal. Fairpoint's ability to handle their new debt load while expanding the network was a major concern during the merger approval process. Customers in New England faced a lose-lose scenario: stay with a company that didn't think they were worth the effort, or migrate to one that might not survive.
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pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

1 recommendation

pnh102

Premium Member

Marketing Is a Waste of Money

Why is Fairpoint spending even one red cent on marketing when it already has a landline monopoly?

Robert
Premium Member
join:2001-08-25
Miami, FL

1 recommendation

Robert

Premium Member

Government bail out..

Oh why.. oh why do I get the feeling that soon they'll be bailed out by the government.

Apollo729
join:2006-08-28
Avis, PA

Apollo729

Member

Re: Government bail out..

My money is on fairpoint failing and Verizon buying back everything they sold for pennies on the dollar, they would have offloaded a large amount of debt in the process.

Robert
Premium Member
join:2001-08-25
Miami, FL

Robert

Premium Member

Re: Government bail out..

said by Apollo729:

My money is on fairpoint failing and Verizon buying back everything they sold for pennies on the dollar, they would have offloaded a large amount of debt in the process.
Using the $600 million dollar tax cut they got?
patcat88
join:2002-04-05
Jamaica, NY

patcat88 to Robert

Member

to Robert
said by Robert:

Oh why.. oh why do I get the feeling that soon they'll be bailed out by the government.

They wont. When was the last time a telco went bankrupt or needed financial assitence to not seriously go down hill?

telcotech
IBEW 2222 Boston, MA
Premium Member
join:2004-09-02
united state

telcotech

Premium Member

The state PUCs know best!

Northern New England's state PUC's were advised by consumer advocate groups, citizens and VZ employees that a sale was not in the best interest of the public.

It'll probably only get worse.
BosstonesOwn
join:2002-12-15
Wakefield, MA

BosstonesOwn

Member

Re: The state PUCs know best!

Like migrating a whole freaking state off the verizon controlled links is easy.

It's a freaking growing pain and a transition pain. Give them more time before you start jumping on the bandwagon.

telcotech
IBEW 2222 Boston, MA
Premium Member
join:2004-09-02
united state

2 edits

telcotech

Premium Member

Re: The state PUCs know best!

I wasn't "jumping on the band wagon". I have been against allowing the sale from the very beginning - long before it was in the headlines.

I own property in NH and have VZ phone service there. As a result, I am directly affected by what goes on. I'm not someone who is unaffected in one of the the other 47 states, pontificating about what is best for those that live in ME, VT or NH.

And yes, I'm a VZ employee but do not work in any of those states. I was concerned about those jobs, but that doesn't appear to be an issue... yet. I hope it doesn't. This is not just a union issue either, many management and non-bargained for employees would have much preferred to remain VZ employees than become employees of *any* company with the financial instability that FairPoint has. It is this instability that is big problem.

In closing, I doubt that there would have been much opposition to a sale to company like AT&T. Selling to a *larger* company however would have precluded the Reverse Morris Trust, which is what made the transaction desirable to VZ in the first place.
jebba2005
join:2005-01-13
Portland, ME

jebba2005

Member

I thought

I thought the transfer of power was not complete yet. My friends just signed up for Verizon dsl. James Earl Jones left them a message on their answering machine;)
I have no faith what so ever in the dopes working in Disgusta. Could this be the union members intentionally messing things up? Nothing like a good conspiracy.

BOGBS
Premium Member
join:2004-05-11

3 edits

BOGBS

Premium Member

Re: I thought

said by jebba2005:

Could this be the union members intentionally messing things up? Nothing like a good conspiracy.
I'm doubting that one, since they have a contract with FairPoint. As long as FairPoint keeps afloat, they're happy, for the most part. Union members don't just go around breaking things, for no reason, contrary to what some may say, or think.

According to the sourced article, miscommunication between the Andover, MA facility (Verizon) to Manchester, NH (FairPoint) was possibly a cause of the issues (just speculation, on my interpretation in the linked article). That and the probable "software glitch".

FairPoint has also had a large gap in employees from those who left before the transaction completed, so I'm sure that's not helping either. Again, I'm not sure if that was part of the issue, or not.

I do have to say that I hope this is not indicative of how FairPoint is going to handle day to day operations. I hope that slow responses are not going to be daily practice at FairPoint, especially when it comes to severe, service impacting outages. I'm crossing my fingers that things will improve, but only time will tell. I'm no fan of FairPoint, but I'd rather try to be an optimist about them, so long as things do get better, and they keep up with service...

FLengineer
CCNA, CEH, MCSA
Premium Member
join:2007-06-26
Deltona, FL

FLengineer

Premium Member

Neglect

No doubt Verizon has neglected the copper network up there the same way they are neglecting the copper network in Florida, It may take some time for Fairpoint to get those systems running properly again. The 911 troubles would have happened to Verizon if the deal never happened so we probably shouldn't blame Fairpoint.
sidone
join:2000-11-06
Brooklyn, NY

sidone

Member

Re: Neglect

From what i can tell the big V is not putting any more mony into copper it is all going to FIOS (RIP copper)I sure hope section 8 people can afford fios.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: Neglect

If Verizon retires copper, they will have to provide the service that their PUC filled tarrifs and state regulations require (lifeline and basic local phone service). We all know landline rates on copper and FIOS are identical. So section 8 people will get landline phone, except no $20 DSL, but more expensive FIOS. But that doens't matter, nobody regulates internet prices.
pcme2000
join:2008-01-17
Bangor, ME

pcme2000

Member

Fairpoint Makes Poor First Impression In New England

I live in Bangor, Maine and so far have had NO problem with Fair Point except that they do not have there web site up so , but willthat bills can be paid online. Instead if you call in to pay the bill the charge you $3.50. But as for now they will credit you the $3.50 back onto your account.

isawyer
@verizon.net

isawyer

Anon

Re: Fairpoint Makes Poor First Impression In New England

I live in Washington County Maine and my bill has already increased by about $30 a month, with no new services added mind you. The deal also cost me a job as I worked for a small WISP that has spent 3 years trying to bring broadband to those areas that I'm sure Fairpoint will ignore like most other services do. You think Fiarpoint is going to bring DSL to all the residents? How about those housing communities that live off of an 8 mile dirt road about 10 miles from the nearest CO? Not gonna happen.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Fairpoint Makes Poor First Impression In New England

How did Fairpoint cost you your job? you didnt work for VZ or them. you worked for an Indie ISP. Its not their fault the company you worked for did not stay open.
penawab2007
join:2007-03-28
Old Town, ME

penawab2007

Member

Re: Fairpoint Makes Poor First Impression In New England

All I can add is Fairpoint jacked my DSL package up, without notice, wothout nothing. Bill came, there it was. So they expect I guess that I'm going to pay $40+ for 2.750 MBPS, since they have Vz's cap on. But already called GWIU, gonna get the max my line can handle, which will be around 4-4.5 Mbps, since I know someone way further up my loop getting 3.8 Solid. And guess what? For a few bucks less!!!! Way to go Fairpoint. And if their business people don't smarten up, they'll realize allot of people can added cable BB to their TV package for around similar cash, = even more defectors.

I would wish them bad luck, but I don't want to see so many people badly impacted, though I have a feeling they'll go down hill and go bankrupt eventually. I'm also curious to see how they do with tech support, b/c anything would be an improvement of Vz, or have I spoken to soon??!! LOL.

ANGRY AMERICAN
@ywave.com

ANGRY AMERICAN

Anon

Re: Fairpoint Makes Poor First Impression In New England



FairPoint bought our phone company, had a special, 3 months 30% off for a DSL Upgrade from standard or premium to the top level,.... Ok, I fell for it, no charge for the upgrade, until my second bill, first bill showed 30% discount, 2nd 3rd and 4th show a slighter higher that normal cost for the advertised rate of the top speed DSL package, so I guess they @#$@#$ing LIED.....

I guess DEREGULATION is !#@#%@ing GOOD for economy....

Like DEREGULATED FUEL has been!!!!

@%$K THIS COUNTRIES POLITICIANS!!!!!!!!!



200 years learning that regulations are a MAJOR NEED to sustain our economy, our government, our FREEDOMS!!!

DUMB AS$$$3e POLITICIANS of today need to be BURNED AT THE STAKE!!!!