Kucinich Promises Hearings on Verizon-Fairpoint Deal

Public anger and concern over Verizon's planned sale of its rural access lines in New England to the tiny telecom, Fairpoint Communications, boiled over last weekend, as nearly 1,000 labor and community activists united in a "stop the sale" rally in Portsmouth, N.H.

Demonstrators cheered speakers who condemned the sale as a tax dodge for Verizon that would greatly diminish telephone and Internet service for the 3 million residents of New Hampshire, Vermont and Maine. Speakers included CWA local and district leaders, Portsmouth's mayor, and presidential candidate and Rep. Dennis Kucinich (D-Ohio).

Rep. Kucinich, who chairs a House subcommittee that has jurisdiction over the Federal Communications Commission and Securities and Exchange Commission, promised to convene hearings on the matter. "This deal doesn't pass the smell test," he said, stating that it would leave "rural communities on the other side of the digital divide. Verizon doesn't want to service rural communities" and "based on its finances, Fairpoint can't."

Kucinich said the deal was also a way for Verizon to "break" its workers' unions by "spinning off to a company that has serious financial troubles and a poor track record for protecting jobs and benefits." CWA District 1 Vice Pres. Chris Shelton said Verizon selected such a small company as its deal partner so it could take advantage of a tax loophole and pocket the proceeds of the $2.72 billion sale tax free. "Verizon picked tiny Fairpoint because it allows Verizon to end up controlling more than 50 percent of the company's voting rights and economic value while reaping huge tax savings," he told demonstrators.

Portsmouth's mayor, Steve Marchand, praised citizens for rallying together on "common interests." "Working together we can make our voices heard until the great potential of the information age is actually fulfilled," he said.