Verizon buyer pledges to put broadband in every port
By BETTY ADAMS
Staff Writer
Kennebec Journal & Morning Sentinel Wednesday, January 24, 2007

FairPoint Communications will use Verizon's land lines to deliver high-speed Internet access across Maine, its chief executive told a meeting of the Morning Sentinel editorial board Tuesday.

Chairman and Chief Operating Officer Eugene Johnson reiterated his company's promises to widely deploy high-speed Internet, keep all Verizon employees and benefits, and invest $200 million in the infrastructure his company is buying from Verizon.

Those promises were first made last week, when FairPoint announced it was buying Verizon's local phone exchanges in Maine, New Hampshire and Vermont for $2.7 billion. That leaves Verizon with only its wireless business in northern New England, and FairPoint with newfound status as one of the state's dominant telecommunications companies.

When the deal is complete, the number of FairPoint customers will leap from 60,000 to 700,000 in northern New England, giving the company 1.7 million access lines, he said.

"We'll be the eighth-largest telephone company" in the United States, Johnson said.

The deal "will position us nicely to continue our strategy of growing our platform in New England," he said.

Based in Charlotte, N.C., FairPoint has operated in Maine since 1994 and currently supplies local phone service to Winthrop, China, Vassalboro, Mount Vernon, Palermo and other rural central Maine towns where Verizon did not offer local phone service.

Johnson stressed his company's interest in land lines distinguish FairPoint from Verizon.

"This is our focus. It's not theirs," he said. "That's why they sold it to us."

Currently, 91 percent of FairPoint customers can get high-speed Internet, said Johnson, who predicted that Verizon customers will see "a major uptick" in high-speed availability when they become FairPoint customers.

"Broadband access is not only the future of our business, it's absolutely essential to drive economic growth," Johnson said.

In 2004, Gov. John Baldacci announced an initiative to assist rural Mainers in gaining access to broadband services. He created the Connect ME Authority and funded it with $500,000 from the Universal Service Fund.

While not referring to that specific initiative, Johnson said FairPoint would need the help of the state or federal government to bring broadband access to the most remote areas. "We provide the backbone that allows for economic development," Johnson said. "Even with cable and wireless, we provide the critical backbone that drives economic development and a sustainable economy."

Johnson said FairPoint and Verizon plan to file paperwork next week with the Public Utilities Commission seeking approval for the sale, which Johnson said should be complete by year's end.

He said FairPoint plans to invest $200 million throughout northern New England to improve customer support infrastructure over the next two years, starting even before the deal is completed.

As for inherited Verizon employees: "When the union contracts come up, we hope to cooperatively work with unions to renew those contacts," Johnson said. "We will not attempt to cut jobs, pay and benefits."

A news release from Verizon said about 3,000 employees would go with FairPoint and about 300 employees who work in national or regional support would remain with Verizon.

Johnson said he expects to add 600 new FairPoint employees in northern New England. FairPoint operates in 18 states.

"Our company has a lot of experience with small urban centers and rural areas," Johnson said. "We think we can do a really good job."

Broadband is a generic term for Internet designed to carry data-heavy voice, audio-video and image transmissions. The term often includes include DSL, delivered over land-based phone lines, or broadband, delivered via coaxial cable.

Time Warner Cable currently offers broadband access in much of Kennebec County.

Betty Adams -- 621-5631

badams@centralmaine.com


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