(Host) FairPoint Communications is asking the Legislature to relax state regulations and reduce penalties for poor service.
FairPoint says it needs the changes in order to compete fairly against other telecommunications providers.
VPR’s John Dillon has more:
(Dillon) FairPoint’s champion in the Statehouse was once its strongest legislative critic.
Essex-Orleans Senator Vince Illuzzi chairs the Senate Economic Development Committee. He was skeptical when FairPoint bought Verizon’s land line business in northern New England more than two years ago.
But Illuzzi says FairPoint provides hundreds of well-paying jobs. And he says it’s now an essential piece of the Vermont telecommunications infrastructure. He’s pushing a bill that would loosen regulatory oversight of FairPoint.
(Illuzzi) "At the present time we have a number of telephone and Internet providers in the state that are totally unregulated by state government. And then on the other hand we have FairPoint communications which is regulated as it was 30 or 40 or 50 years ago."
(Dillon) But Senator Mark MacDonald of Orange County says FairPoint delivers inferior service and uses outdated technology. And he questions why it should be rewarded by the Legislature.
(MacDonald) "And the idea that we would stop regulating them on the thing that they begrudgingly do which is to provide phone service and not call them to task on their attempt to sort of provide shoddy, cheap service for the Internet future is misguided."
(Dillon) FairPoint had a rocky transition when it switched over from Verizon two years ago. Billing errors were widespread and some customers were unable to get new lines connected for homes or businesses. And many waited for hours on hold as FairPoint call centers were overwhelmed with complaints.
Mike Smith is president of FairPoint in Vermont.
He says the company’s performance has improved. And he wants the Legislature to reduce the maximum penalties the company can face for poor service.
(Smith) "In terms of per capita, per access line, per customer, we are the highest penalized telephone company in the country."
(Dillon) Smith says FairPoint now has to seek approval from regulators before changing prices for products. He says that puts the company at a competitive disadvantage.
(Smith) "Let’s say a competitor that’s unregulated goes to one of our customers and says, ‘Look, we can offer you this sort of price.’ And that customer calls me and says, ‘Can you match that price?’ I say: ‘Yes, I can match that price, but can you give me a little bit of time because I’ve got to seek approval for that?’ In today’s world, that doesn’t work with a customer."
(Dillon) Senator Illuzzi says FairPoint needs help now because it’s losing landline customers to cable companies and wireless providers.
(Illuzzi) "And I see the handwriting on the wall that if we don’t act in a fashion similar to what’s contained in this legislation FairPoint will continue to lose landlines, lose business and then we not only have the company in jeopardy but we also have these good paying, middle class jobs that everybody in America says we should try to preserve and protect."
(Dillon) An official at the state agency that advocates for consumers says the Shumlin administration is aware of the issues FairPoint faces in the competitive market. The administration has not yet taken a position on Illuzzi’s bill.
For VPR News, I’m John Dillon in Montpelier.