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July 27, 2009

Static over FairPoint | It's been more than one year since North Carolina-based FairPoint Communications took over Verizon's land lines in Maine and northern New England, and the company is still making news.

By Mindy Favreau

It’s been more than one year since North Carolina-based FairPoint Communications took over Verizon’s land lines in Maine and northern New England, and the company is still making news. Here’s a roundup of the latest headlines:

The Maine Public Advocate’s office is taking FairPoint to task for not providing low-cost DSL service as it promised, according to Maine Public Broadcasting Network. The advocate’s office filed a letter June 4 with the state Public Utilities Commission saying it plans to file a formal complaint if the company does not offer basic high-speed Internet service for $15 a month, a stipulation in the PUC’s approval of the sale of Verizon’s landlines to FairPoint. Richard Davies, Maine’s Public Advocate, told MPBN the company’s cheapest monthly high-speed charge is $33.99. Davies also expressed frustration over customer service problems he says FairPoint has not resolved in a timely fashion.

On June 15, FairPoint retaliated with a letter of its own to the PUC, saying FairPoint is “in complete compliance” with the agreement made at the time of the sale. In the letter, Audrey Prior, vice president of government relations, wrote that FairPoint has maintained Verizon’s existing rates as agreed, but that “the Amended Stipulation does not require FairPoint to advertise these rates and we have made the reasoned business decision not to do so.” Prior contended that “decisions on what to advertise, publicize and promote are ultimately a part of doing business, and those decisions must be ours to make.” The letter maintains that any customer who asks about a Verizon rate receives it.

Meanwhile, a new CEO is preparing to take over the company on July 1. FairPoint’s board of directors has tapped David Hauser to replace Eugene Johnson, who is retiring, as chairman and CEO. Hauser is the former chief financial officer at Duke Energy Corp. and has been a FairPoint board member since February 2005.

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