Maine Regulators Refuse to Be Rushed into FairPoint Sale

A last minute scramble by Verizon Communications – and nearly half a billion dollars in concessions from Verizon and FairPoint Commuications – couldn't stampede Maine regulators into accepting a settlement without additional review.

The Maine Public Utilities Commission has set a December 20 hearing date to determine whether and how to address the "partial, contested" settlement in the sale of Verizon Communications operations to FairPoint Communications.

CWA and the IBEW continue to oppose the sale and commended regulators for not participating in a rush to judgment. 

The unions maintain that the proposed deal does not even come close to the recommendations made by the PUC's Hearing Examiner. Despite the concessions, Maine residents still will be left with a financially risky company without sufficient resources to improve service quality and expand high speed broadband.  The amount of the concessions, though insufficient, shows that even the companies have been forced to recognize FairPoint's financial weakness and proves that they have been caught in their attempt to pull a fast one on the regulators in the three states, the unions said.

Verizon is seeking to sell its operations in Maine, Vermont and New Hampshire to financially strapped FairPoint Communications in order to take advantage of an arcane tax loophole that would give Verizon with a $600 million tax break. Decisions in New Hampshire and Vermont also are expected by the end of the year.