[telecom] Vermont Regulators Reject Verizon/FairPoint Deal

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Web Editor: Maureen O'Brien, Managing Editor
Created: 12/21/2007 2:30:23 PM
Updated: 12/21/2007 7:11:48 PM

MONTPELIER, VT (NEWS CENTER) -- Vermont utilities regulators have dealt
a major setback to FairPoint Communications. The Vermont Public Service
Board rejected the company's proposal to buy Verizon's landlines in
Maine, Vermont and New Hampshire.

Echoing concerns raised by the staff of Maine's Public Utilities
Commission, the Vermont regulators question FairPoint's ability to
survive financially if the deal goes through.

Fairpoint would have to borrow $2.5 billion to make the purchase. The
board says that could exert "significant financial pressure" when
combined with operating costs and revenue projections.

The board said FairPoint is free to submit revisions to the plan that
addresses the financial concerns. In Maine, such revisions were
submitted, and the PUC has allowed the process to move forward. The
commissioners are scheduled to meet again on December 26.

The deal needs the approval of regulators in all three states in order
to go through.


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Re: [telecom] Vermont Regulators Reject Verizon/FairPoint Deal
Mr Joseph Singer wrote:
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Why wouldn't Embarq be interested in acquiring those lines ?  I would
think that it would fit in well with their existing business, and open
some opportunities for economies of scale, etc.  Although I can't be
sure without examining financial statements and other documents which I
probably wouldn't understand anyhow, it seems like Embarq's financial
stability should be pretty decent.

Re: [telecom] Vermont Regulators Reject Verizon/FairPoint Deal
Justa Lurker wrote:
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I don't think Embarq would want a bunch of spread out areas, that is
unless they have service areas in that state.  I know when GTE bought
ConTel they sold a lot of those service areas that were not in large
enough to serve on there own, plus a bunch of GTE areas that as they put
it did not fit in.

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