GNG News Guy
01-04-2008, 12:11 PM
http://i.dslr.net/urls/67/45367.gif (http://www.dslreports.com/shownews/Verizon-Sale-to-FairPoint-Approved-By-Maine-Regulators-90678)
The Maine Public Utilities Commission voted late yesterday to approve (http://pressherald.mainetoday.com/story.php?id=159862&ac=PHnws) the sale of Verizon's telephone network in Maine to FairPoint Communications. The three commissioners acted after "an exhaustive, 12-hour session," only after FairPoint made significant financial concessions aimed at reducing the company's debt load after acquisition. In addition to quality standards Fairpoint must meet, the company must also agree to:•Reduce the rate for basic home and business telephone service (currently $19.29) by more than $4 a month, for at least five years.
•Make high-speed Internet service available to 83 percent of all lines within two years, and 90 percent over five years.
•Freeze prices for current Verizon 768kbps DSL customers at $15 a month with a two-year contract and $18 with a one-year contract, for at least two years.
Verizon's $2.7 billion plan to offload their Maine, New Hampshire and Vermont networks uses a Reverse Morris Trust to obliterate $1.7 billion in Verizon debt, while giving the telco a $600 million tax write off. Fairpoint meanwhile gets saddled with considerable debt, which is why Vermont regulators denied approval last month (http://www.thegng.org/shownews/90409). Regulators in Vermont, New Hampshire and at the FCC must now approve the deal for it to go forward.
read comment(s) (http://www.dslreports.com/shownews/Verizon-Sale-to-FairPoint-Approved-By-Maine-Regulators-90678)
The Maine Public Utilities Commission voted late yesterday to approve (http://pressherald.mainetoday.com/story.php?id=159862&ac=PHnws) the sale of Verizon's telephone network in Maine to FairPoint Communications. The three commissioners acted after "an exhaustive, 12-hour session," only after FairPoint made significant financial concessions aimed at reducing the company's debt load after acquisition. In addition to quality standards Fairpoint must meet, the company must also agree to:•Reduce the rate for basic home and business telephone service (currently $19.29) by more than $4 a month, for at least five years.
•Make high-speed Internet service available to 83 percent of all lines within two years, and 90 percent over five years.
•Freeze prices for current Verizon 768kbps DSL customers at $15 a month with a two-year contract and $18 with a one-year contract, for at least two years.
Verizon's $2.7 billion plan to offload their Maine, New Hampshire and Vermont networks uses a Reverse Morris Trust to obliterate $1.7 billion in Verizon debt, while giving the telco a $600 million tax write off. Fairpoint meanwhile gets saddled with considerable debt, which is why Vermont regulators denied approval last month (http://www.thegng.org/shownews/90409). Regulators in Vermont, New Hampshire and at the FCC must now approve the deal for it to go forward.
read comment(s) (http://www.dslreports.com/shownews/Verizon-Sale-to-FairPoint-Approved-By-Maine-Regulators-90678)