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story category Verizon/Fairpoint Deal a Lose-Lose Scenario For Consumers
Stay with disinterested Verizon, or embrace cash-strapped Fairpoint?
01:13PM Friday Mar 14 2008 by Karl Bode
tags: dsl · business · telco · Verizon Online DSL · Fairpoint Communications
Computer World explores how Verizon's sale of its New England DSL and phone networks to Fairpoint communications is somewhat of a lose-lose scenario for consumers. On one hand, they're free of Verizon, who'd let much of that infrastructure deteriorate because they wanted to focus on more profitable regions of the country, and clearly had no interest in serving those customers. On the other hand, Fairpoint lacks the funds to really build out the network, and those States will obviously never see FTTH connectivity.
From a financial standpoint, the Verizon/FairPoint deal is upside down. The deal has $88 billion Verizon selling 1.7 million landlines and its DSL business in Northern New England to the $270 million FairPoint, along with more than $1 billion in debt. The price that FairPoint ultimately pays for the business will be reflected in customer rates - and the debt it takes on will limit FairPoint's ability to bring the infrastructure into the 21st century, no matter what its intentions.
The real winner of course will be Verizon, who not only sheds a mountain of debt but gets a $600 million tax writeoff in the process. A number of States with large rural populations have complained that the telco has neglected the infrastructure in those States in order to focus assets on FiOS. Obviously Fairpoint's first order of business is to get out into the field and repair the network, something that will eat up their already limited assets.

Related:
  1. Verizon Hints At New 7Mbps DSL
  2. Fairpoint Deal Moves Forward
  3. Vermont Regulators Deny FairPoint Deal
  4. Verizon Sale to FairPoint Approved By Maine Regulators
  5. New Hampshire Approves Fairpoint Deal
  6. Verizon Expands 7Mbps DSL Availability
  7. Special Sunday Meeting May Block Verizon-Fairpoint Sale
  8. Verizon Sells ME, NH, VT Networks
Forums » Verizon/Fairpoint Deal a Lose-Lose Scenario For Consumers
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Post a:

Skeedatl
Ah, push it - push it real good
Premium
join:2007-12-26
The Cloud

Can't believe anyone

The unions are full of crap, Verizon is full of crap, the State's are ALWAYS full of crap.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: Can't believe anyone

Nobody wants to invest where there's little profit (Verizon), and those that actually do want to manage it do not have the resources (Fairpoint) - typical, nothing new here.
Fairpoint is the Qwest of the east.
--
Canada = Hollywood North
patcat88

join:2002-04-05
Jamaica, NY

Re: Can't believe anyone

Do nothing and collect the USF laughing all the way to the bank.
Jeanne021556

join:2003-08-07
Portland, OR

FairPoint

They will do just fine. The company has been preparing for this acquisition for over a year. I have FairPoint service in Washington State and it's excellent. Voice/IPTV and Internet. Plus they build FTTH for newer subdivisions. Something other rural telco's are not doing.

Give them a break. Verizon isn't interested in rural America. At least with FairPoint the northeast will get ADSL+2, bonded pairs for higher internet, IPTV, and where they can build new service, FTTH !
patcat88

join:2002-04-05
Jamaica, NY

Re: FairPoint

said by Jeanne021556 See Profile :

At least with FairPoint the northeast will get ADSL+2, bonded pairs for higher internet,
Have any proof?
Jeanne021556

join:2003-08-07
Portland, OR

Re: FairPoint

Yes. I have the service in Washington. They plan deployment of Occam and ADC in the northeast. They also use Actelis for bonded pairs. They will do just fine and subscribers will be happy with the improvements. Verizon wasn't planning any so why beat up a company that wants to improve the area ?

rit56

join:2000-12-01
New York, NY

Re: FairPoint

admit you work for them...

bear73
Metnav... Fly The Unfriendly Skies
Premium
join:2001-06-09
Grand Forks Afb, ND
·Midcontinent Commu..

Re: FairPoint

does he have to work for them to champion them? perhaps he gets a newsletter as a customer of them....

OK, maybe he does. But so what?! if Fairpoint is going to build out, who cares!

any large construction needs a long lead-in time for planning and pre-positioning.

The REAL issue here is that Verizon has been allowed to skate out of a $1B debt AND a $600M write-off?!?!?!

I CALL SHENANIGANS!!!!!! (since the post nazi will block bullshit)
--
If ya gotta go, Go with a SMILE!
»www.thereligionofpeace.com/
Jeanne021556

join:2003-08-07
Portland, OR

I do not work for them, but I am in the Telecom industry and do consulting. I think folks should give FairPoint a chance. They are improving service where they can afford to do so. People also need to remember that in rural america most homes have very old copper wiring inside the home. Fiber to the curb won't cure what is a problem inside the home.

Flashfire

@verizon.com

FTTH sounds good...too bad Fairpoint and Verizon have spent 2 years convincing rural consumers that are not informed of upgraded technology that DSL is currently the latest and greatest while customers in populated areas can enjoy fiber to the home. Glad you have fiber, but we are never going to see it now.

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
clubs:

Re: FairPoint

You were never going to see it anyway with VZ. Why not give Fairpoint a chance. Let them prove you right before you get too depressed...
KM
Yeedog

join:2004-09-05

Re: FairPoint

We were never going to see it in NH anyways?

That's why there are around 10-15 communities in southern NH that has FIOS right not. I'm not talking small towns either, but a few of the bigger cities in NH. Plus Verizon was planning expansion of FIOS to another 10 communities, with Manchester on the list. Manchester is the largest city by population in NH.

Verizon was also actively procuring franchise agreements with each area for FIOS TV as well. The only reason this all stopped was because of the sale to Fairpoint. If there was no sale pending I'm sure FIOS roll out would still be happening in NH.
droobie
Premium
join:2007-10-09
Bangor, ME
·Great Works Internet

We already have ADSL2+ in the Northeast.. At least we do in Maine and part of NH. www.gwi.net has their own hardware in these COs.

However, in the Fairpoint Northeast market, your choices are much much worse. 384/256 for 34.95, 1.5/512 for 44.95, or 1.5/1.0 for 79.95. Even Verizon DSL isn't THAT bad.

Source: »www.fairpoint.com/telco/646fpne/···/dsl.php
hottboiinnc
Kyle

join:2003-10-15
Toledo, OH
Fairport actually bought a few local companies out in Ohio near PA. They seem to be doing pretty well there.

cableties
Premium
join:2005-01-27
Levittown, PA

This is deserving the

OBVIOUS tag...

justdslmealready

@keene.edu

Re: ALL LOSERS

There will be hell to pay if Fairpoint refuses to remove the DLC in front of my house which Verizon refused to deal with... HELL I tell you.
hoyleysox

join:2003-11-07
Long Beach, CA
·Time Warner Telecom

Win for consumers that aren't in New England

Let me spin this the other way. Its a win-win for over 90% of consumers, since most consumers do not live in New England...

Lines in rural New England lines are more expensive to service (on average) than lines in dense-urban population centers.

If you are a consumer that does not live in New England, this is a win-win for you because your bill will no longer be subsidizing those expensive New England lines (except for through USF).

bear73
Metnav... Fly The Unfriendly Skies
Premium
join:2001-06-09
Grand Forks Afb, ND

Re: Win for consumers that aren't in New England

yea, now more of your monthly check to them will be lining their pockets...
--
If ya gotta go, Go with a SMILE!
»www.thereligionofpeace.com/

Former VZ

@verizon.net

lame

This really is a lose/lose. I've had FTTH for a year and a half and who the hell knows what's going to happen with it once Fairpoint takes over. I certainly wont be able to get FiOS TV or phone, that's for sure. What a waste.

pakron

@verizon.net

fairpoint verizon "Catastrophic Boondoggle"

"Catastrophic Boondoggle" I have always like these words but I never have had a need to use them, but this deal seems to fit nicely....

pakron

@verizon.net

"Catastrophic Boondoggle"

"Catastrophic Boondoggle"

tenpin784
I Went To The Dark Side?

join:2001-03-30
New Durham, NH
·Metrocast Communic..

been thinking

I have been thinking that from the start.

Obviously Verizon does not want us, and Fairpoint can't handle us.

If the deal goes through, Fairpoint does not have the resources to do what they say they are going to do.

If the deal did not go through, Verizon would have neglected us even more then they already were.

It is a lose-lose up here.
--
Dream as if you'll live forever, live as if you'll die today.

Disclaimer: These are MY comments, my employer cant be held responsible.
Forums » Verizon/Fairpoint Deal a Lose-Lose Scenario For Consumers


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