Breaking News: Vermont regulators nix Verizon-FairPoint deal
Today, the Vermont Public Service Board said a resounding "No" to the proposed sale of Verizon's landlines in northern New England to FairPoint Communications:
"The Board found that FairPoint had not demonstrated that it would be financially sound as it seeks to operate the newly-acquired territories in Vermont, Maine and New Hampshire -- a service territory that has five times the number of access lines as Fairpoint presently has," the Board said in a prepared statement.
The company would have to borrow $2.5 billion to complete the transaction, the debt service on which could exert "significant financial pressure" when combined with operating costs and revenue projections, the Board said.
Communications Workers of America President Larry Cohen applauded the decision.
"This week, Singapore announced it will build out its broadband networks to provide one Gigabit per second in high speed Internet to every home. Yet FairPoint currently offers at most 1.5 megabits per second. With Internet speeds that in some cases are nearly 1,000 times faster than what FairPoint offers, Singapore – and other nations where deployment of true high speed networks is a priority – have a tremendous advantage over the United States. In rejecting this deal, the Board recognized the critical importance of keeping Vermont residents on the information highway."
The Vermont Board's decision left open the opportunity for Verizon and FairPoint to re-apply if it meets certain conditions to alleviate concerns about its finances. But if the companies offer Vermont the same settlement that they have proposed in Maine in response to similar concerns, it would not change the viability of this deal. Residents still would be dependent on a financially shaky company and still would be at risk for declining service quality and limited, if any, access to new technological developments.
CWA, together with the AFL-CIO and the International Brotherhood of Electrical Workers, is urging governors and lawmakers to consider an alternative to create a stronger communications network for northern New England residents. They have proposed establishing an independent telephone company that would create a stronger, more viable network
While the decision in Vermont is a victory for high speed Internet access in northern New England, the fight is still not over.
Vermont regulators deny FairPoint phone deal as proposed (Burlington Free Press)
Maine regulators say no to FairPoint despite cash concessions (Speed Matters)
Morgan Stanley issues warning about FairPoint (Speed Matters)
CWA Applauds Vermont Public Service Board for Rejecting Verizon-FairPoint Deal
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