FairPoint fights state’s challenge to its license

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(Host) FairPoint Communications is fighting back against the state’s challenge to its operating license.

Despite months of complaints about poor service, the region’s major phone company declared today that there is no evidence to justify the state’s legal action.

VPR’s John Dillon reports:

(Dillon) In July, the state office representing consumers turned up the legal heat on FairPoint.

The state said that consumer complaints were piling up. And because FairPoint had failed to resolve its chronic service quality problems, the department said FairPoint should now be forced to show why it should be allowed to keep its license.

But at a hearing in the case, FairPoint lawyer Nancy Malmquist flatly rejected the state’s argument.

(Malmquist) "At this point, FairPoint does not believe that there is any evidence, nothing on the record that would justify the issuance of a show-cause order. There is no evidence on the record, no specific details, or specific claims."

(Dillon) That drew a skeptical response from Public Service Board member John Burke.

(Burke) "No matter how we cut this cake legally, at the end of the day, there were commitments made by FairPoint that we took seriously, one of which was business as usual by the end of May. It’s hard for us to ignore those commitments, and in fact it’s our hope that even though they haven’t occurred, yet – I don’t think, undisputedly you’ve acknowledged that they haven’t – it’s our hope that they do. The process here is designed to make this succeed."

(Dillon) And PSB chairman James Volz said FairPoint may be technically correct – that there is yet no evidence of FairPoint’s failures on the formal record in this particular case.

But Volz pointed out, that would be an easy legal problem to fix with testimony that supports the state’s case.

(Volz) "I think that everyone is aware, the public is aware, and everyone is painfully aware of the shortcomings of the company."

(Dillon) FairPoint spokeswoman Beth Fastiggi said the company is working to resolve many of the complaints. But she said there’s still room for improvement, especially for business customers.

(Fastiggi) "One of the other areas that we are working on and are still working is effective and timely delivery of services for our large business and wholesale customers. … We can process those orders, but it takes us more time often than we would like."

(Dillon) Meanwhile, FairPoint CEO David Hauser traveled to Chittenden County for a reception with prominent business leaders. Fastiggi said the meeting was focused on sales, and to deliver the message that the company had improved service.

FairPoint is also struggling under a heavy debt load that it took on when it bought Verizon’s land lines in northern New England. The company has warned it may need to re-structure its debt in bankruptcy.

 

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