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Morning Sentinel
Phone sale wins approval
Public Utilities Commission votes after FairPoint concessions
By TUX TURKEL
MaineToday Media, Inc. Kennebec Journal & Morning Sentinel 01/04/2008

AUGUSTA -- The Maine Public Utilities Commission late Thursday approved the sale of Verizon's telephone network in Maine to FairPoint Communications.

The three commissioners voted to approve the sale after an exhaustive, 12-hour session, and only after FairPoint made significant financial concessions designed to reduce its debt after the $2.7 billion sale.

Regulators in Vermont and New Hampshire, and the Federal Communications Commission, also must give their approvals for the sale to become final. Verizon and FairPoint hope to close by Jan. 31.

The case before the PUC was considered among the most important telecommunications decisions facing the agency in a generation. The outcome and its conditions will affect virtually every home and business customer that now has telephone or Internet services from Verizon.

Verizon is Maine's dominate local telephone service provider. It owns more than 600,000 access lines roughly 85 percent of Maine's total. These lines also support Internet access for thousands of home and business customers.

Among the conditions:

n FairPoint will reduce the rate for basic home and business telephone service by more than $4 a month, for at least five years.

The rate now is $19.29 a month.

n FairPoint will make high-speed Internet service available to 83 percent of all lines within two years, and 90 percent over five years.

n Prices for existing Verizon high-speed DSL service will be frozen at $15 with a two-year contract and $18 with a one year contract, for at least two years.

n FairPoint also will have to meet strict service quality standards, or face increasing financial penalties.

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Reader comments

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no way of waterville, ME
Jan 5, 2008 12:50 AM
a couple of politicians and some out of state millionaires made this deal happen, public opinion is meaningless. Now they can move on to selling plum creek land to the newly minted millionaires from this foul deed.

Anyone check out this months consumer reports for Broadband? Guess what, Fairpoint doesn't even get listed. Not a word. And they rave about their products and services. By the way, Verizon is listed as first. FIOS that is.
Yeah, lets get rid of them because they say they don't want to be here. Why didn't you do your job and create an environment where they could succeed.

Good work Maine PUC. Since I pay your salary, I don't think I will give you a raise for seven years, and I will also take away your retiree medical benefits and I will not give you a pension. Just like good old Fairpoint has promised for us.

Lets just hope NH and Vermont have some integrity left.report abuse
nerf Hofflemeyer of meddybemps, ME
Jan 4, 2008 11:34 AM
I like the fact my phone still works when the power is out. Timewarner telephone goes out with the power.report abuse
Edwards234 of Fairfield, ME
Jan 4, 2008 10:26 AM
Look all you cry babies you don't need to stay with Fairpoint you can always go to Time warner, So stop your crying. and shut your big yap . Well all know the Government is crocked .report abuse
raider of Oakland, ME
Jan 4, 2008 9:52 AM
The press has been successfull at keeping out the names of the Lawyers and Law firms who represented the Telephone companies..Were they working by the hour? or were they getting a percentage of the profits guaranteed to Verizon and Fairpoint?
Were the lawyers connected politically?
Why is this information being kept out of the
process?report abuse

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