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Fairpoint's Ultra-Secret Improvement Plan
Discussed this week in secret closed-door meeting...
by Karl Bode 03:28PM Wednesday Jun 10 2009
Fairpoint continues to struggle with taking ownership of Verizon's Maine, New Hampshire and Vermont DSL and landline networks. In a nice deal for Fairpoint, the same regulators who couldn't see problems during the deal approval process -- have allowed the company to implement a top secret improvement plan customers don't get to see -- discussed this week in a closed-door hearing that consumers don't get to attend. According to the Nashua Telegraph, the public portion of the hearing didn't provide anything of use, so nobody really knows what's being accomplished -- if anything:
quote:
The hearing was called to provide an update on cash-strapped FairPoint's financial status, but the public portion of the meeting was cryptic at best, with finances discussed only in generalities.
Consumers will have to wait for answers to why the carrier continues to struggle with poor (sometimes nonexistent) customer service, billing problems, and a huge order backlog. About 11,000 Vermont Fairpoint customers this week enjoyed an outage that left them without service for most of Monday. 6,000 customers who canceled service because of the problems were mistakenly billed for non-existent service -- and are still waiting for refunds from Fairpoint. A little transparency doesn't seem like much to ask.

The transaction was a great win for Verizon, who shed a mountain of debt, offloaded rural markets they didn't want to upgrade, and netted an estimated $600 million tax write off. Consumers and Fairpoint aren't faring quite as well, and the problems raise the question whether regulators should continue to sign off of every merger and acquisition they see. It also raises the question whether Frontier -- who is about to obtain an even larger swath of rural Verizon markets -- is ready for the challenge.

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whiteyonenh

join:2004-08-09
Keene, NH

Improvement plan? Like what?

I'd like to know what kind of improvement plan that Fairpoint has, we have Comcast in much of NH now upgraded to DOCSIS3/2.0, offering 12/2 for the base $42.95 tier. Then we have Time Warner offering 8/512 and 15/1. Where does Fairpoint fit in, they've already lost the broadband race here in much of the state. They also were saddled with a lot of debt from Verizon when the sale went through. With the billing and other issues with the switchover, I can't even count how many people that I am friends with that have switched to cable. Time Warner is running some very good promotions, same with Comcast. I can't see where Fairpoint can fit in.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: Improvement plan? Like what?

My guess is that they're going to put themselves on the market soon, either publicly or in a hush-hush way. Shortly after that, they'll get bought out.

As to who will do the buying, my guesses, in order of likliehood, are:

1. CenturyTel (or CenturyLink, whoever they are now)
2. Frontier
3. AT&T
4. Verizon

If the buyer is Verizon, I'd predict they'll wait until FairPoint goes into bankruptcy so they don't have to take on as much debt. That way, they'd get those areas back and make a nice profit in the selling off and buying back, then they could turn around and sell the whole thing again.

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY

Re: Improvement plan? Like what?

said by ISurfTooMuch:

If the buyer is Verizon, I'd predict they'll wait until FairPoint goes into bankruptcy so they don't have to take on as much debt. That way, they'd get those areas back and make a nice profit in the selling off and buying back, then they could turn around and sell the whole thing again.
Good business move in my opinion, good strategy too.
--
D-Day; If you can read this thank a soldier
-The United States of America-

hottboiinnc
ME

join:2003-10-15
Cleveland, OH
VZ won't but them back. They got rid of them for a reason. ATT won't be allowed to take them over. The Feds will block that. Remember Bush and his team is gone. Major mergers are over for four years, that's why Alltel and VZ rushed to get that approved. ATT is still waiting on the go ahead for Cent. Wireless.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: Improvement plan? Like what?

I don't think they'd buy them back for the long run, no, but if they could get them back at a rock-bottom price they might, then they could flip those properties and make even more money off them.

jester121
Premium
join:2003-08-09
Lake Zurich, IL
said by hottboiinnc:

Remember Bush and his team is gone. Major mergers are over for four years, that's why Alltel and VZ rushed to get that approved.
*snicker* That's not why mergers are over for four years. (except of course, mergers/acquisitions/liquidations/takeovers that come about by executive order without any legal standing).
sbcretired

join:2006-01-07
Scottville, MI
Reviews:
·AT&T U-Verse
·AT&T Midwest
said by ISurfTooMuch:

My guess is that they're going to put themselves on the market soon, either publicly or in a hush-hush way. Shortly after that, they'll get bought out.

As to who will do the buying, my guesses, in order of likliehood, are:

1. CenturyTel (or CenturyLink, whoever they are now)
2. Frontier
3. AT&T
4. Verizon

If the buyer is Verizon, I'd predict they'll wait until FairPoint goes into bankruptcy so they don't have to take on as much debt. That way, they'd get those areas back and make a nice profit in the selling off and buying back, then they could turn around and sell the whole thing again.
So here in our locale, Verizon sold off the outside copper and local C.O.'s but kept the Cellular and Long Distance. Guess who the buyer is TA-DA, Fairpoint.
I wonder if they bit off more than they can chew?

S_engineer
Premium
join:2007-05-16
Chicago, IL

man...

Sounds like that regulatory body needs to be purged!

Everyone knew this was coming....pay attention potential Frontier customers.
--
BF69~~~Please stop suffocating gerbils!

morbo
Complete Your Transaction

join:2002-01-22
00000
Reviews:
·Charter

Re: man...

said by S_engineer:

Everyone knew this was coming....pay attention potential Frontier customers.
worth repeating.

whfsdude
Premium
join:2003-04-05
Washington, DC

Pessimistic

I'm having a hard time believing this is anything important. They can't even get billing right or maintain their copper for T1 lines.

SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Boston, MA

Who knew?

Everyone except for the regulators, obviously.

Anyway, I sympathize with those w/o service. I had my NH phone taken off "vacation suspend" in April and the service was on within a few days, as promised. Surprise!

I called to activate CID two weeks later and they said they couldn't add it because another order was "pending" The other order was the restoration from vacation suspend which had been completed (or so I thought) two weeks prior. It's been 3 weeks as of last weekend and still no CID. How difficult is it to add CID to a line that is already working?? A couple of taps on a keyboard and it's back into translations - case closed. If they can't get this activated in 3 or 4 weeks, I feel sorry for anyone still without a dial tone - it could be a long, quiet summer.
--
UNIONS: The anti-theft device for working people.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Who knew?

Depends on where you live with CID. ATT still says its a service added manually at the CO and takes between 3-5 business days to activate it.

Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
Reviews:
·CenturyLink

Well I had hidden cameras there


Here is the anti P2P enforcement unit

This is the VDSL unit
There is a good reason why it was kept secret, these people might one day be in line to be a commissioner at the FCC.

tubbynet
reminds me of the danse russe
Premium,MVM
join:2008-01-16
Chandler, AZ
kudos:1

discipline....

well...if their ultra-secret improvement plan doesn't work, someone should put them on double-secret probation...



q.

mouseferatu
Too many cats, Too many mice
Premium,MVM
join:2004-03-16
Im not sure
kudos:3

Re: discipline....

said by tubbynet:

well...if their ultra-secret improvement plan doesn't work, someone should put them on double-secret probation...
I absolutely agree.

However, according to the NH Union Leader, FP was put on double secret probation back on April 18, 2009.

»NH puts FairPoint on Double-Secret Probation...

So, at this point, they must be headed for triple secret probation!!
--
"Do not meddle in the affairs of dragons, for thou art crispy and good with catsup."

tubbynet
reminds me of the danse russe
Premium,MVM
join:2008-01-16
Chandler, AZ
kudos:1

1 recommendation

Re: discipline....

said by mouseferatu:

So, at this point, they must be headed for triple secret probation!!
oh noes! the intertubez might be enderz for all of fairpointz uber-1337 peoplez!



q.
--
"...if I in my north room dance naked, grotesquely before my mirror waving my shirt round my head and singing softly to myself..."

a union member

@verizon.net

They told you!!!

Just to make a point, people on the site love to bash Telco union employees. But it was the CWA and the IBEW, stated that these problem were going to happen. Customers and citizens of these Fairpoint territories should blame themselves, and there state government for this mess.

tim_k
Buttons, Bows, Beamer, Shadow, Kasey
Premium,VIP
join:2002-02-02
Stewartstown, PA
kudos:36

Re: They told you!!!

said by a union member :

Just to make a point, people on the site love to bash Telco union employees. But it was the CWA and the IBEW, stated that these problem were going to happen. Customers and citizens of these Fairpoint territories should blame themselves, and there state government for this mess.
The people and the unions didn't pad the right pockets
--
RIP my babys Buttons 1/15/94-2/9/07 & Beamer 7/24/08, Buttons, Buttons video, Beamer