FairPoint wants out of $845K in Maine fines

PORTLAND, Maine (AP) - FairPoint Communications has asked Maine regulators to be relieved of more than $845,000 in penalties imposed for poor wholesale service to local phone carriers.

The penalty imposed by the Maine Public Utilities Commission is part of $2.8 million that FairPoint estimates it owes to local phone competitors across northern New England for poor network service from February through April.

Additional penalties are expected for May and June.

In filings with state regulators, FairPoint says some of the problems cropped up as it assumed control of Verizon's wired telephone and high-speed Internet service assets in February were "beyond FairPoint's control."

Since taking total control of the Verizon system last winter, FairPoint has been plagued by customer service, billing and other operational problems. The problems also hurt competing phone carriers that utilize FairPoint's network.

Local carriers in Maine that use FairPoint's system oppose a waiver of the penalties. They say they've lost customers and revenue.

"We have been injured," Fletcher Kittredge, chief executive officer at Great Works Internet in Biddeford, told the Portland Press Herald. "Now FairPoint is saying they shouldn't have to pay penalties because they tried as hard as they could."

Kittredge figures GWI, which has 20,000 customers in Maine, stands to receive more than $350,000 in penalties from FairPoint.

FairPoint said its efforts to be relieved of the penalties in northern New England is part of a broader effort to strengthen its finances.

FairPoint is also seeking to postpone a bond interest payment due in October on debts totaling $531 million. If it can't be put off, the company might seek alternative debt-restructuring plans, which could include bankruptcy, FairPoint has said.

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Displaying comments, from newest to oldest

Hymn@work's picture
verified

Lesser of 2 evils. One cant

Lesser of 2 evils. One cant handle the business and Verizon did not want to be here.

big daddy's picture

FairPoint should be held

FairPoint should be held accountable because of them I'm been delayed in getting DSL service.They bit off more then they could chew and now they want to whine about it. They just gave their C.E.O. a huge pay increase so they got the money so live up to your mistakes.

tron's picture

So you want to penalize

So you want to penalize FairPoint and give the money to GWI which is a direct competitor to Fairpoint? Seems a tad unfair.

MomOfTwo's picture

Fairpoint lost my business

Fairpoint lost my business shortly after arriving on the scene. I switched my internet access from Verizon/Fairpoint to a wireless carrier and I dropped my land line choosing instead to use cell phone service only. I thought it would be a difficult transition but I don't miss my land line at all and my internet service is relatively unchanged.

davem1966's picture

So what they are saying is;

So what they are saying is; "when we proposed buying out Verizon we insisted we were not getting in over our heads, when people said we were getting in over our heads we dismissed those concerns. Now we want to be bailed out because we were in over our heads and it wasn't our fault."

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