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FairPoint Communications, Inc.
Type Public (Pink Sheets: FRCMQ)
Founded 1991
Headquarters Charlotte, North Carolina, USA
Key people David L. Hauser- ceo/chairman Peter G. Nixon-President
Industry Communications Services
Products Broadband Internet services, Local wireline, Cable Television
Revenue $1,274.62 Million [1]
Net income $ -68.53 million
Employees 4,071[2]

FairPoint Communications, Inc. (Pink Sheets: FRCMQ) is headquartered in Charlotte, North Carolina, and operates communication services in 32 markets in 18 states, mostly in rural areas. FairPoint was founded as MJD Communications Inc. in 1991, and was established as an Incumbent Local Exchange Carrier (ILEC) which gave it certain rights and obligations regarding providing service to rural areas.

FairPoint services include local and long distance phone service, data, Internet, broadband, television and business communications solutions.[3]


Northern New England expansion

In 2007, FairPoint had about 330,000 access points or customers. In that year, Verizon Communications announced plans to sell its landline operations in Maine, New Hampshire, and Vermont to FairPoint for $2.7 billion. Of that amount, $1.7 billion would go to Verizon Communications in cash and debt and approximately $1.015 billion would go to Verizon shareholders in FairPoint common stock. Verizon would hold no stock.

After extensive federal and state regulatory review and approval, the purchase became effective March 31, 2008, for a price of $2.4 billion. State regulators sought a lower figure out of concerns that excess debt would hamper service and expansion.

Approximately 1.6 million phone customers and 230,000 high speed internet users in the three states were added to FairPoint’s customer base, with the result that the Northern New England customers represented 85% of FairPoint’s customers.[4]

This increase made FairPoint Communications the 8th largest phone company in the United States. Of its nearly 4,000 employees, approximately 80% serve the Northern New England customers.

Service and Tech Issues

FairPoint has received much scrutiny since the expansion into Northern New England. Emergency 911 problems made the company scramble to look into how to fix these violations. Landline service has been troubled and sluggish especially in the state of Vermont and Maine causing numerous and a very high number of complaints from both phone and internet service. The Maine PUC fined FairPoint $25,000 for the delays in 911 services.[5]

Many other problems have plagued the New England subscribers of FairPoint's services, including thousands of serious and recurring billing errors, very poor customer service, lack of (and delay of) an electronic bill-pay option, slow or intermittent services, and sluggish and inadequate response to customer complaints and service issues. As of August 2009, the State of Vermont has been in the process of considering revoking FairPoint's right to provide services in that state. FairPoint has consistently failed to meet deadlines to provide a response to Vermont and other states about how they intend to resolve the numerous problems.

On September 16, 2009, Public Service representatives and lawmakers of Maine, New Hampshire, & Vermont convened a joint hearing with FairPoint exectives to demand answers for the multitude of problems that has characterized FairPoint's operation in those states.

FairPoint is also under investigation for duping the states of Vermont, Maine and New Hampshire.[6] State regulators are reviewing an anonymous e-mail from someone claiming that during tests leading up to the February 1 cutover, FairPoint created a computer program "to deceive the audience into believing they were watching a real demonstration" of its readiness. A Maine regulator believes the e-mail is from a FairPoint insider.


On May 5, 2009 FairPoint indicated in its First Quarter 2009 Report that it was "considering engaging a financial advisor to evaluate its current capital structure and to explore options with respect to a potential restructuring." It also acknowledged that it was "at risk of failing to comply with the interest coverage covenant contained in its credit facility as early as the covenant measurement period ending June 30, 2009."[7]

If debt arrangements were not made by October 1, 2009, FairPoint was going to file for Chapter 11 bankruptcy protection, according to CEO David Hauser.[8]

On October 26, 2009, FairPoint Communications filed for Chapter 11 bankruptcy protection.[9]

Service areas

The 18 states served in whole of part are:[3]

Nearly in whole:

In Part:



See also

External links



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