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Maine Regulators OK FairPoint’s $1.5B Sale to Illinois-Based Company

digital.vpr.net

The sale of FairPoint Communications’ telephone business in Maine and northern New England took a step forward Wednesday.

Illinois-based Consolidated Communications wants to buy FairPoint’s assets in Maine, New Hampshire and Vermont for $1.5 billion. And an important hurdle was cleared with approval by the Maine Public Utilities Commission.

FairPoint has been plagued by customer service complaints over the years, but Consolidated should be in a better financial position. Consolidated will refinance FairPoint debt at a lower rate, and has promised to invest $17 million a year in broadband services in Maine.

Tim Schneider, the state’s public advocate, also says such investments should result in better service than FairPoint could provide.

“They just weren’t in a position financially to make the investments that they probably needed to keep service quality up. And I think one of the results should be that you have a more financially secure company service Mainers,” he says.

Unions representing FairPoint workers did not oppose the deal, although details of Consolidated’s plans to save $55 million in “synergies” have yet to be provided.

Approvals from regulators in New Hampshire and Vermont are pending.

A Columbia University graduate, Fred began his journalism career as a print reporter in Vermont, then came to Maine Public in 2001 as its political reporter, as well as serving as a host for a variety of Maine Public Radio and Maine Public Television programs. Fred later went on to become news director for New England Public Radio in Western Massachusetts and worked as a freelancer for National Public Radio and a number of regional public radio stations, including WBUR in Boston and NHPR in New Hampshire.