From a regulatory perspective, Verizon’s sale of its Maine telecommunications system to Fairport Communications is a pick-your-poison scenario between companies tasked with delivering the state’s lofty telecom goals.

Verizon is shedding its northern New England infrastructure – some 1.6 million telephone lines in Maine, Vermont and New Hampshire – to focus on emerging technologies. Fairpoint, which now manages 300,000 lines, has agreed to pay $2.7 billion for the three states, a major investment by the 16-year-old company.

In the middle are rulemakers, faced with a departing giant (Verizon) or an onrushing upstart (Fairpoint). Verizon’s willingness to sell its assets softens hopes of building Maine’s new economy through its wires, and its wireless.

Enter Fairpoint, which proposes to take a mountain of debt (some $2.3 billion) while promising to increase the state’s penetration of broadband Internet service. Concern exists about Fairpoint’s ability to manage Verizon’s network while also pushing innovation.

The deal has also spurred legislation, LD 1866, which would stiffen the Maine Public Utilities Commission’s approval threshold for ownership changes involving utilities with in-state revenues greater than $50 million.

If LD 1866 is enacted, the PUC would weigh such utility deals against the advancement of state economic development and information access goals, as well as benefits to ratepayers and investors. The current “do-no-harm” threshold would remain effective for smaller utility sales or mergers.

LD 1866 is timed to coincide with Verizon-Fairpoint, but proponents say the legislation is a long-overdue improvement to the PUC’s regulatory oversight of utility transactions.

Applying this new standard to Verizon-Fairpoint, however, is a fait accompli. Fairpoint doesn’t have the finances to proceed where Verizon has demurred – a point acknowledged by the Public Advocate – to meet Maine’s telecommunications goals, which were first set forth under Gov. Angus King.

Gov. John Baldacci reiterated the state’s telecom vision in 2006, in announcing the “Connect Maine” initiative, which pledged wireless service to 100 percent of Maine by 2008, and broadband to 90 percent by 2010. The state’s current broadband penetration is about 15 percent, according to recent studies.

It’s been too costly, for providers like Verizon, to build the infrastructure to extend the latest telecommunications technology into rural Maine. The smaller Fairpoint cannot be reasonably considered to provide the same potential for expansion of service as Verizon. LD 1866 creates a question to support this answer.

Having the PUC review deals against economic development goals is correct, as all new utility providers in Maine should be made aware of, and asked to embrace, the needs and expectations of the state.

A more equitable standard is holding all transactions, regardless of revenue, to the new thresholds of LD 1866.