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September 21, 2009

Fair ride | Recent ups and downs in FairPoint Communications' image control

The telecom company has had plenty of convincing to do lately. North Carolina-based FairPoint has, in recent weeks, defended claims that it duped consultants, fielded tough questions from regulators and applied for money to expand broadband in Maine. Here are the specifics:

FairPoint did win some ground earlier this month, after the Maine Attorney General’s office dropped its investigation into allegations that the company faked readiness to take over Verizon’s landline telephone service in Maine. An anonymous e-mailer claimed that FairPoint presented phony information to consultants hired by three state regulatory agencies to assess whether the company was ready to take over operations from Verizon, the Bangor Daily News reported. It turned out the e-mailer had no firsthand knowledge of the testing process, and Attorney General Janet Mills said there was no proof backing his claim.

Less encouraging was FairPoint’s meeting with regulators from Maine, New Hampshire and Vermont in Derry, N.H., on Sept. 9. CEO David Hauser assured the panel that the company would resolve lingering customer service problems. “I have a huge sense of urgency,” Hauser told regulators. “Let’s face it, northern New England is what makes or breaks FairPoint.” Hauser and other company officials said FairPoint expected to receive a consultant’s list of recommended changes by mid-November, according to the Bangor Daily News. The number of complaints reaching regulators has dropped, but remains about three times higher than before the switch-over, according to the newspaper.

Despite its existing troubles in northern New England, FairPoint seeks to be tapped to expand broadband service in the state. The company’s $15 million proposal is among 16 Maine projects submitted to federal agencies charged with disbursing $7.2 billion in stimulus money to improve the nation’s broadband access. The projects will be reviewed by Maine’s Broadband Strategy Council and other state agencies, which will make recommendations to the feds.

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