A significant number of Fairpoint customers are owed refunds for some fairly horrific stretches of service last year, as the company struggled to integrate Verizon's New England DSL and landline networks (and more importantly, $2.3 billion in Verizon debt from the deal). At points, Fairpoint couldn't even
answer the phone or provide working 911 service -- much less provide a good voice or data connection. While Fairpoint had funds for a
marketing makeover and to
lobby against rural broadband improvement projects in Maine, the company has fought providing consumer refunds. Today Fairpoint was
forced to settle with Maine after they took their opposition to court. The Judge included a touch of snark in his ruling:
At a hearing today in Manhattan, U.S. Bankruptcy Judge Burton Lifland ruled that FairPoint could begin making payments, after court-ordered mediation resulted in the settlement. The deal must still be approved by the Maine Public Utilities Commission. "Anytime you want to come back and litigate, I'm prepared to," Lifland said, noting that the settlement will be only partially implemented. "You will get a swift response."
According to the
Associated Press, Fairpoint will begin paying the rebates in March, and will be paying out more than $8 million back to consumers. Your cut of that may not impress you much, however. Fairpoint will be paying consumers back $1.72 per line, per month -- for 12 months. Feel better, Fairpoint customers?
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