In yesterday’s story, FairPoint Communications learned that the state utility commissions in Vermont, New Hampshire, and Maine, were underwhelmed by their proposal to take control of telephone service formerly provided by Verizon.  The regulatory authorities in all three states felt state residents would bear most of the risk, and too few rewards in return for approving the deal.  New Hampshire was among the most skeptical.

[flv width=”320″ height=”240″]http://www.phillipdampier.com/video/WMUR Manchester FairPoint and Verizon Plan to Refile Proposal 12-21-07.flv[/flv]

Vermont wasn’t overwhelmed with what it saw either:

[flv width=”320″ height=”240″]http://www.phillipdampier.com/video/WCAX Burlington FairPoint’s New Plan.flv[/flv]

But FairPoint returned to the negotiating table to make additional promises and concessions.  But would they ultimately keep them?

In late January of last year, FairPoint Communications hammered out deals with all three New England states pondering what a Verizon to FairPoint transfer of telephone service would mean to their residents.  Northern New England residents are more likely than not to live in smaller towns and rural communities, and a perennial problem for residents of all three states was consistent access to broadband Internet service.  Verizon had made progress on providing DSL service to many residents across all three states, but significant gaps in coverage were always a problem.  Those lucky enough to have cable television service, usually provided by Comcast, could obtain broadband access from the cable company.  But cable has never offered universal service.  The more rural of an area you reside in, the lower the chances the cable line will pass your home.

Maine was first to approve the revised deal, once the state was assured FairPoint had the financial ability to maintain the state’s telephone infrastructure.  Vermont was second to approve the deal after the Public Service Board “tweaked” the terms and conditions.  Financial stability of FairPoint and customer service were Vermont’s primary concern, and the state insisted that FairPoint reduce its debt load.  But local unions representing Verizon remained skeptical that FairPoint was up to the job.  Although residents were promised improvements in broadband service, the part Verizon left out is that it would come in the form of copper line DSL service, not the advanced fiber optic network Verizon was installing in cities across the country. WCAX-TV in Burlington reports:

New Hampshire was the last to decide they liked the revised proposal, and approved it as this report detailed back on January 24, 2008 on WMUR-TV:

[flv width=”320″ height=”240″]http://www.phillipdampier.com/video/WMUR Manchester Deal Must Still Be Considered By Commission 1-24-08.flv[/flv]

The following day, the New Hampshire Business Report examined the deal more closely as well:

Tomorrow, what FairPoint promised in 2008 regarding broadband in 2009 and beyond.