CWA Calls for Independent Telecom Spinoff for No. New England

As regulators in Vermont, New Hampshire and Maine express concern over Verizon's proposed sale of its phone business to a small North Carolina company, FairPoint Communications, CWA has proposed that governors and lawmakers in the three states consider forming an independent company to buy and operate the telecommunications network.

CWA leaders applauded the Vermont Public Service Board for its recent rejection of the deal in a ruling that concluded the sale "has the potential to lead to a reduction in service quality, in less investment in the Vermont infrastructure and to slower deployment of broadband services than is acceptable."

The Vermont regulators "got it exactly right," said CWA President Larry Cohen.  He noted that a proposal by the two companies to restructure the deal to lesson FairPoint's debt load, which is being considered by regulators in Maine this week, is inadequate and would still leave residents with a financially shaky company and limited – if any – access to high speed Internet services.

CWA, together with the AFL-CIO and IBEW, is urging leaders in the three states to establish an independent company to create a stronger, more viable network, which would:

--  Be operated by local management dedicated to the region.

--  Not be burdened with $2.3 billion in debt, as FairPoint would be.

--  Improve on Verizon's record of investment in the region, versus FairPoint's plan to cut that investment.

--  Continue shareholder dividends at current or lower levels, unlike FairPoint, which plans to pay twice as much in dividends as it earns in income.

--  Be committed to rolling out true high-speed Internet service to every home and business.