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June 18, 2008

FairPoint delays takover

FairPoint Communications is delaying its takeover of Verizon's telephone system in northern New England after consultants told utility regulators that the company has not yet ironed out kinks in its systems or hired enough staff.

The Liberty Consulting Group, which was hired by New Hampshire, Maine and Vermont to monitor the transition of Verizon landlines to FairPoint, said that in order for FairPoint to complete its cutover in September, it would need to prove its readiness by July 7, according to the Liberty Consulting Group's monthly report to regulators. That goal will likely not be met and the consultants said pushing back the takeover deadline to November would give FairPoint enough time to "demonstrate cutover readiness." The delay will be costly for FairPoint, which is paying Verizon $16 million a month in transition fees, according to the Portland Press Herald.

FairPoint has been troubled by malfunctioning 911 equipment in the past couple of months, and the Press Herald noted that Liberty said this was the "most important of the systems still under development."

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