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.