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FairPoint Delays Full Takeover of Verizon Networks
September takeover date bumped to November in face of preparation issues...
by Karl Bode 06:28PM Wednesday Jun 18 2008 Tipped by jebba2005 See Profile
Yesterday I noted that Fairpoint was having a hard time keeping Maine 911 systems operational, something that hasn't made a good first impression on the New England customers recently acquired from Verizon. The Portland Press Herald now reports that the September date for Fairpoint to take over Verizon systems has been pushed back to November, after a consulting firm working for State regulators found that Fairpoint "hasn't gotten all the bugs out of operating and software systems, or hired enough staff to assume control." The delay will boost costs:
quote:
The delay will put an additional financial strain on FairPoint, which is paying Verizon roughly $16 million a month in transition fees to jointly operate the system. The company also is in a race against time to roll out marketing and rate programs designed to retain and attract customers. Delaying the cutover sets back that effort.
The company this week was also penalized $25,000 for their 911 issues. Fairpoint's suddenly looking at considerable additional expenses for a company few thought could afford to acquire and run Verizon's New England network in the first place. A $600 million tax-write-off, a billion in debt eradicated and $16 million monthly in transition fees? Verizon's making out much better than consumers or Fairpoint thus far.

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Mr Matt

join:2008-01-29
Eustis, FL
kudos:1

Time for Uncle Sam to bail FairPoint out.

I predict that Uncle Sam will bail FairPoint out while Verizon skips on down the road carrying the bag of money from the transaction. A Corporation wins. Taxpayers loose.

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

Re: Time for Uncle Sam to bail FairPoint out.

said by Mr Matt:

I predict that Uncle Sam will bail FairPoint out while Verizon skips on down the road carrying the bag of money from the transaction. A Corporation wins. Taxpayers loose.
NO, probably won't. What will happen is that the state PUC's, that held regulated rates down on Verizon and why Verizon dumped them to Fairpoint, will be forced to allow Fairpoint to raise rates no matter what the agreement was on rate increases.
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patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Time for Uncle Sam to bail FairPoint out.

Its best if they fine the company to bankruptcy or bankruptcy protection, then the state buys out Fairpoint for a low price as an out of court settlement, if that doesn't work, get a judge to sign a condemnation order making Fairpoint's network "public property" for "the benefit of the people". Either sell the network off piecemeal to counties/towns and sell the long lines to a backbone provider. Or just split Fairpoint up by each state, and create a not-for-profit whose shares are owned by the respective state govt to run the network.

Dogfather
Premium
join:2007-12-26
Laguna Hills, CA

3 edits

1 recommendation

There is no emergency. They had a power supply problem in one of the 9-1-1 centers that got fixed and FP is paying a fine.

Acquisitions of this scale always have some issues; Comcast taking over ATTB, TWC taking over in Los Angeles, and the list goes on.

Fairpoint wanted to grow so they made the purchase and they're experiencing minor pains during the transition that is pushing back the hand over 60 days. Hardly the end of the world for FP or their new customers.

PhoenixDown
FIOS is Awesome
Premium
join:2003-06-08
Fresh Meadows, NY
kudos:1
Those states authorized it, hopefully it will only come out of their state taxes.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Time for Uncle Sam to bail FairPoint out.

said by PhoenixDown:

Those states authorized it, hopefully it will only come out of their state taxes.
Tax-payers.

Dogfather
Premium
join:2007-12-26
Laguna Hills, CA

1 edit

Re: Time for Uncle Sam to bail FairPoint out.

He's saying state taxpayers as opposed to Uncle Sam (as the OP mentions), who would be the rest of us Federal taxpayers.
comp
Premium
join:2001-08-16
Evans City, PA

Re: Time for Uncle Sam to bail FairPoint out.

The PUC's who allowed this should all be fired. Most of the public opposed this yet the states still allowed it to happen

Dogfather
Premium
join:2007-12-26
Laguna Hills, CA

1 edit

Re: Time for Uncle Sam to bail FairPoint out.

Why? Because a power supply in a 9-1-1 center went bad? That's dumb.

Transitions always have issues and this delay in the transition to FairPoint is all of a whopping 60 days. Hardly the end of the world.

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

I like it, I like it.

I made $385 by selling off the great unwashed trouble makers. If the state regulatory boards spent more time doing what there charter mandated instead of sticking their nose into NSA matters Verizon may still be their phone company.