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December 10, 2009 Bangorbiz

Broadband, not bankruptcy, focus of FairPoint event

By Aimee Thibodeau

FairPoint Communications Chairman and CEO David Hauser won't be able to go into details next week regarding the company's bankruptcy, but he will provide an update on FairPoint's status and goals at a coffee and networking session, hosted by the recently revived Action Committee of 50 Inc. in Bangor

"He can't discuss [FairPoint's bankruptcy] in depth because of legalities," says Jennifer Brooks, economic and community development director at Eastern Maine Development Corp., which provides some staff support for the advocacy group.

Hauser is scheduled to speak at 8 a.m. Wednesday, Dec. 16, at The Hilton Garden Inn in Bangor following coffee at 7:30 a.m. About 60 people already have signed up for the event, but there is more space available, according to Brooks.

Although Hauser may give a status report regarding the bankruptcy process, he intends to focus on the company's current activities and broadband access and plans for expansion in Maine, she says.

Expanding high-speed Internet access was one of the goals and promises of FairPoint when it purchased Verizon landlines in Maine, New Hampshire and Vermont in March 2008 - making FairPoint one of the largest telephone companies in the country.

Since then, the company has been fraught with financial problems. In October, it filed for Chapter 11 bankruptcy, and is now in a battle with the Maine Public Utilities Commission, which previously ordered the company to reimburse customers for poor service and now wants FairPoint to lower its rates.

FairPoint recently reported a $77 million loss in the quarter ending Sept. 30.

Revenues for the North Carolina-based telecommunications company were $268.3 million, an 18.3% drop over the same quarter in 2008, according to the Associated Press. The company's total voice access lines in service fell 9.3% between last September and this September.

So far this year, FairPoint has lost $103.9 million, according to the Associated Press.

Brooks says Hauser will focus primarily on expanding broadband in the state, but also will address other promises the company made prior to their purchase agreement in 2007.

"The Action Committee of 50's focus this year is on broadband infrastructure for the region, as well as energy," says Brooks.

The Action Committee is made up of area residents who make a contribution to the region's economic development. Most are business leaders who are willing to take on an issue and are able to look for and make changes to improve the region.

Although the group has been somewhat dormant the last few years, it has been in existence for a long time. Previously, the Action Committee was a strong advocate for bringing research and development to the University of Maine, providing assistance in recruiting German manufacturing company ZF-Lemforder to come to Brewer, and was involved in the Bangor military base closings.

"They can lobby and be a voice where economic development professionals aren't able to do that type of thing," said Brooks, who notes that as a fiscal agent, EMDC provides some staffing assistance for the Action Committee, but it is a separate entity.

To attend the Action Committee of 50 Inc. event, contact Annie Umphrey at 942-6389 or e-mail aumphrey@emdc.org.

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