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
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:
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.