Maine regulators say no to FairPoint despite cash concessions

Maine regulators declined to approve a settlement between Verizon and FairPoint Communications despite Verizon's concession of nearly half a billion additional dollars to quell fears of FairPoint's financial instability. The Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) contend that high speed Internet would not be improved or expanded with Maine's Verizon Communications operations in FairPoint's hands, as FairPoint is financially unstable and does not have sufficient funds for the advancements.

CWA and the IBEW maintain their opposition to the sale, and have commended the regulators for insisting on further review. They note that the proposed deal, even with the financial concessions, continues to fall significantly short of the recommendations of the Public Utilities Commission Hearing Examiner.

Verizon is attempting to sell its Maine, Vermont and New Hampshire operations to financially-strapped FairPoint Communications to exploit a tax loophole that would allow Verizon to avoid paying $600 million in taxes. There will be a Maine PUC hearing on December 20th to determine the partial and contested settlement of the sale in Maine. Decisions in New Hampshire and Vermont are also expected by the end of the year.

The point? It's not fair. (Speed Matters)

Maine Regulators Refuse to Be Rushed into FairPoint Sale (UNI Global Union)

Morgan Stanley issues warning about FairPoint (Speed Matters)

Report: Verizon's tax savings could fund universal access in northern New England (Speed Matters)