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August 4, 2009

FairPoint: UMS unfairly competing for stimulus bucks

By The Mainebiz News Staff

FairPoint Communications representatives are accusing the University of Maine System of unfairly competing with the telecommunications company for federal stimulus funds to boost broadband access in the state.

Up for grabs is more than $7 billion in federal stimulus act funds to expand broadband Internet access to rural areas. Maine will have at least one broadband expansion project funded under the act, according to Capitol News Service. FairPoint is proposing a $20 million upgrade that will expand broadband access to 90% of the state by 2013, while UMS is part of a private-public partnership developing a different broadband improvement plan, the news service reported. "The university is not putting forward a stimulus proposal," Jeff Letourneau, associate director of information technology for UMS, told the news service. "What we are doing is backing one that best meets our needs." Letourneau said the proposal would better provide UMS and other high bandwidth users like The Jackson Laboratory with affordable broadband access, something they have not been able to negotiate with FairPoint.

Severin Beliveau, an attorney representing FairPoint, told the news service the university system's involvement in that proposal puts it in direct competition with the company. "They are in fact receiving a subsidy from taxpayers, in competing with the private sector," Beliveau said.

Neither proposal has been filed with federal officials, the news service reported. The state Broadband Strategy Council plans to look at all broadband proposals filed by the middle of the month and decide later in the year whether to recommend any to federal officials, according to the news service.

Reader comments

From Bill Macdonald (Thu 8/6/2009 12:42 PM)

Fairpoint has some crust! Underneath it all I suspect that they are afraid that a state university and a premier research institution will show them up at their own game, then who else will follow that model?  

From Malissa (Tue 8/4/2009 2:19 PM)

I agree with Ken. Fairpoint should have been allowed to take over Verizon. This was so predictable. Fairpoint failed the state of Maine years ago and they still let them back in to take over and once again they have disappointed.  

From Steve (Tue 8/4/2009 2:05 PM)

It is interesting to note that FairPoint is complaining that a Public Entity is lining up to be the beneficiary of public dollars, whereas FairPoint is lining up for public dollars for the benefit of their shareholders..... this stimulus package makes for interesting arguments. It should also be noted that the consortium that includes the University of Maine has already, to a degree, bypassed FairPoint because of costs and speed to market issues without the stimulus dollars.  

From Ken Dunohe (Tue 8/4/2009 1:21 PM)

Fairpoint should just pack up their bags and move back to NC. Shame on the PUC for allowing them to take over Verizon's landline. Fairpoint is ill equipped, poorly funded and extremely mismanaged. Go Home Fairpoint no really wants you here in Maine, NH, or Vermont. Your service is lously, your customer service is even worse, and you still don't know when your not welcome.  

From Timothy Hiltz (Tue 8/4/2009 12:38 PM)

The University System should not be involved in any way with stimulus money to provide "cheaper services" to the business environment. The initial design of the funding is to improve the infrastructure to users that do not have broadband access available in a rural setting. I do not personally believe we should pay for providing a business with the opportunity to receive broadband at a lesser price. If Jackson Labs want more bandwidth - pay for it.  

From Jim (Tue 8/4/2009 12:23 PM)

The university system's involvement in that proposal puts it in direct competition with Fairpoint? They are in fact receiving a subsidy from taxpayers, in competing with the private sector?

In reality, doesn't that describe most of the stimulus plan?

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