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Fairpoint Over-Reported Revenues By $26.4 million
"Procedural deficiencies" ahoy...
by Karl Bode 08:04AM Friday Mar 05 2010
Ever since the company acquired Verizon's DSL and landline networks in New Hampshire, Maine and Vermont, Fairpoint's had problems connecting 911 service, delivering consistent broadband service, meeting broadband expansion requirements, doling out customer rebates, and even for a while there answering the phone. Now the carrier says they're having problems balancing the books as well. As the carrier struggles with bankruptcy, they've also discovered that a "procedural deficiency" resulted in the company over-reporting their revenues for the first three months of 2009 by around $26.4 million, according to the New Hampshire Union Leader. Fairpoint says the error was "the result of a deficiency in the transfer of certain known customer billing adjustments from the company's billing platform to its general ledger."

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old_wiz_60

join:2005-06-03
Bedford, MA

So what happens..

when Fairpoint goes bankrupt? Who takes over? Will the customers be without phone service at all?

Rob
In Deo speramus.
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Kendall, FL
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Reviews:
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Re: So what happens..

said by old_wiz_60:

when Fairpoint goes bankrupt? Who takes over? Will the customers be without phone service at all?
Verizon will buy it back at 40 cents off the dollar.
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tschmidt
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Re: So what happens..

said by Rob:

Verizon will buy it back at 40 cents off the dollar.
In the beginning of this process I thought that might have been the game plan. but now I think it unlikely. Verizon does not seem interested in wireline business (either copper or fiber) in rural areas. Looks like they want to focus on wireless everywhere and wireline in select urban regions.

/tom

Karl Bode
News Guy
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1 recommendation

Re: So what happens..

Again, Verizon doesn't want these markets, or the union workers complaining about Verizon being cheap, or the regulators complaining about how Verizon is sliding when it comes to support them.

They want to offload the debt, get tax benefits, then come back in three or four years and gobble many of these customers back up with LTE service. The companies (like Fairpoint) that buy these markets wind up so overweight with debt, by the time Verizon comes back around with LTE service -- it will probably be higher quality (5-10 Mbps, reasonable latency) than the aging DSL most of them are getting...

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: So what happens..

I agree. VZW may want to offer a LTE based 'Wireless Land Line' using LTE to replace POTS/DSL. It would cost less to deploy and maintain in rural areas by far.
--
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tim_k
Buttons, Bows, Beamer, Shadow, Kasey
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Stewartstown, PA
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said by Karl Bode:

Again, Verizon doesn't want these markets, or the union workers complaining about Verizon being cheap, or the regulators complaining about how Verizon is sliding when it comes to support them.

They want to offload the debt, get tax benefits, then come back in three or four years and gobble many of these customers back up with LTE service. The companies (like Fairpoint) that buy these markets wind up so overweight with debt, by the time Verizon comes back around with LTE service -- it will probably be higher quality (5-10 Mbps, reasonable latency) than the aging DSL most of them are getting...
Exactly. This way Fairpoint can't compete when LTE is deployed. Verizon won't compete against itself when they deploy LTE to those regions. But with another 12,000 layoffs coming to the mid Atlantic region, I don't think VZ is going to stop with just rural areas. I think they'd like to get rid of most or all landlines and break what's left of the union.
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Karl Bode
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Re: So what happens..

Well somebody has to service FiOS lines, but yeah. I imagine there's plenty more sales coming. Like upstate NY, for one.

cdru
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Fort Wayne, IN
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Fairpoint will have Fairpoint when everything is said and done under their current plans. They filed Chapter 11 which is restructuring of their finances while still attempting to remain operational. Unless they convert to Chapter 7, which would end up in liquidation or selling off the business to other telcos, they should remain operational.

ropeguru
Premium
join:2001-01-25
Mechanicsville, VA
said by old_wiz_60:

when Fairpoint goes bankrupt? Who takes over? Will the customers be without phone service at all?
It will just become another government buyout by the feds....

jgkolt
Premium
join:2004-02-21
Avon, OH

1 edit

verizon

verizon swoops in and saves the day, and buys them on the cheap.

FFH5
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Tavistock NJ
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Re: verizon

said by jgkolt:

verizon swoops in and saves the day, and buys them on the cheap.
Never happen. Verizon got rid of those properties that Fairpoint bought for a reason - they aren't profitable.
zed2608
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join:2007-09-30
Cleveland, TN
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i doubt verasion

at&t more likely to gobble them up
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: i doubt verasion

and that is the only option and most likely will happen.
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Unbelievable

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Solution for Fairpoint Replacement

Why don't all of us on this message board just pool our dollars - I'm certain we can come up with $100,000 between us. Then go to the three state commissions with an offer to buy out Fairpont today and promise to do everything right (just like Fairpoint did) but this time try something different - let's actually do it RIGHT ! Fairpoint would be responsible for all of their present debt and we'd take it from there.
Let's do trial tests of billing systems before accepting the hand off. Let's work with the unions to see what they see as customer problems that need to be addressed. Let's have customer forums to see what customers want.
Oh, and here's something unique. When we promise a press conference (like the one reported in the papers that was to occur on Feb 8th) we could actually HAVE the conference.
Let's fire the Public Relations people that are sitting there and doing nothing (I haven't even seen a press release from these folks in ages - but maybe PR actually means - playing ball with former state cohorts to Fairpoint)
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Solution for Fairpoint Replacement

and lets actually get rid of the unions; the same as VZ did and save the $$$ and put it back into the network. The same as VZW.
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tim_k
Buttons, Bows, Beamer, Shadow, Kasey
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Re: Solution for Fairpoint Replacement

said by hottboiinnc:

and lets actually get rid of the unions; the same as VZ did and save the $$$ and put it back into the network. The same as VZW.
Naw, they would just take the savings and add it to their bonus checks.
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BOGBS
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Re: Solution for Fairpoint Replacement

Ain't that the truth!