FairPoint Communications: Difference between revisions
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Most of FairPoint's central Vermont customers are still only served by [[dial-up internet access]]. |
Most of FairPoint's central Vermont customers are still only served by [[dial-up internet access]]. |
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==Bankruptcy== |
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On May 5, 2009 FairPoint indicated in its First Quarter 2009 Report that it was "considering engaging a financial advisor to evaluate its current capital structure and to explore options with respect to a potential restructuring." It also acknowledged that it was "at risk of failing to comply with the interest coverage covenant contained in its credit facility as early as the covenant measurement period ending June 30, 2009."<ref>[http://phx.corporate-ir.net/phoenix.zhtml?c=122010&p=irol-newsArticle&ID=1284681 Corporate-ir.net]</ref> |
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If debt arrangements were not made by October 1, 2009, FairPoint was going to file for Chapter 11 bankruptcy protection, according to CEO David Hauser.<ref>[http://sentinelsource.com/articles/2009/09/11/news/state/free/id_371077.txt Sentinelsource.com]</ref> |
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On October 26, 2009, FairPoint Communications filed for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy protection]].<ref>{{cite web|url=http://news.yahoo.com/s/ap/20091026/ap_on_bi_ge/us_fairpoint_communications_bankruptcy;_ylt=As5lT25qvbGZ2eqq9X6QN9gEtbAF|title=FairPoint phone company files for bankruptcy|accessdate=2009-10-26}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> |
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As a result of the bankruptcy, Verizon shareholders lost the entire $1.015 billion in shares they had received in the previous year's deal. New England Verizon networks had been profitable before the transfer to FairPoint. After the bankruptcy, the creditors became the initial shareholders of the reorganized FairPoint.{{Citation needed|date=February 2011}} |
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The company emerged from bankruptcy in January 2011.<ref name=Maine/> |
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===Lawsuit against Verizon=== |
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In October 2011, FairPoint's creditors' trust filed a lawsuit against [[Verizon Communications]] for $2 billion, alleging the company misled FairPoint about the assets it was acquiring in northern New England.<ref>[http://www.boston.com/news/local/vermont/articles/2011/11/01/fairpoint_trust_sues_verizon_for_2_billion/ FairPoint trust sues Verizon for $2 billion, The Boston Globe, November 1, 2011]</ref> |
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==Post Bankruptcy== |
==Post Bankruptcy== |
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Revision as of 19:13, 28 June 2013
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| Company type | Public |
|---|---|
| Nasdaq: FRP | |
| Industry | Communications Services |
| Founded | 1991 |
| Headquarters | Charlotte, North Carolina, USA |
| Products | Broadband Internet services, Local wireline, Cable Television |
| Revenue | $1,274.62 Million [1] |
| $ -68.53 million | |
Number of employees | 3,300[2] |
| Website | www.fairpoint.com |
FairPoint Communications, Inc. is headquartered in Charlotte, North Carolina, and operates communication services in 31 markets in 17 states, mostly in rural areas.
FairPoint services include local and long distance phone service, data, Internet, broadband, television and business communications solutions.[3]
History
FairPoint was founded as MJD Communications Inc. in 1991, and was established as an Incumbent Local Exchange Carrier (ILEC) which gave it certain rights and obligations regarding providing service to rural areas.
The company acquired the Cass County Telephone Company in 2006, integrating its operations into FairPoint Communications Missouri. It also acquired the Germantown Independent Telephone Company in Germantown, Ohio.
Northern New England expansion
In 2007, FairPoint had about 330,000 access points or customers. In that year, Verizon Communications announced plans to sell its landline operations in Maine, New Hampshire, and Vermont (Northern New England Spinco) to FairPoint for $2.7 billion. Of that amount, $1.7 billion would go to Verizon Communications in cash and debt and approximately $1.015 billion would go to Verizon shareholders in FairPoint common stock. Verizon would hold no stock.
After extensive federal and state regulatory review and approval, the purchase became effective March 31, 2008, for a price of $2.4 billion. State regulators sought a lower figure out of concerns that excess debt would hamper service and expansion.
Approximately 1.6 million phone customers and 230,000 high speed internet users in the three states were added to FairPoint’s customer base, with the result that the Northern New England customers represented 85% of FairPoint’s customers.[4]
This increase made FairPoint Communications the 8th largest phone company in the United States. Of its nearly 4,000 employees, approximately 80% serve the Northern New England customers.[citation needed]
As part of the purchase, FairPoint had to make broadband available to 83 percent of customers. On January 27, 2011, the company announced it had met this goal. 68.9 percent of its customers had broadband at the time of the purchase; 44,000 new customers have the service now.[5] FairPoint offers high speed internet through the use of DSL technology.
Most of FairPoint's central Vermont customers are still only served by dial-up internet access.
Post Bankruptcy
Payphone sale
On May 22, 2012, FairPoint announced that it would sell its pay telephone operations to Pacific Telemanagement Services. The deal includes its 4,000 payphones operated through Northern New England Telephone Operations and Telephone Operating Company of Vermont. The phones only generate about $1 million in revenue and have become unprofitable.[6]
Service areas
FairPoint owns the following operating companies:
- Big Sandy Telecom - Simla, Colorado[7]
- Columbine Telecom Company - Crestone and Mosca, Colorado[8]
- FairPoint Communications Missouri
- FairPoint Vermont
- Fremont Telcom Co. - Fremont County, Idaho (formerly part of U S WEST Communications[9])
- GTC, Inc.
- Northern New England Telephone Operations - Maine, New Hampshire (formerly part of Verizon New England)
- Sunflower Telephone Company - Kansas, Colorado
- Telephone Operating Company of Vermont (formerly part of Verizon New England)
The 18 states served in whole or part are:[3]
Nearly in whole:
In Part:
- Alabama
- Colorado
- Florida
- Georgia
- Illinois
- Kansas
- Massachusetts
- Missouri
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Virginia
- Washington
See also
- NYNEX
- Northern New England Spinco
- Northern New England Telephone Operations
- Telephone Operating Company of Vermont
- Hawaiian Telcom
Notes
- ^ Google.com
- ^ Reuters.com
- ^ a b FairPoint.com
- ^ FairPoint.Com
- ^ "FairPoint meets broadband commitment in Maine". News & Observer. 2011-01-27. Retrieved 2011-02-03.
- ^ (2012-05-22). FairPoint Communications Announces Sale of Payphone Operations PRNewsWire. Retrieved 2012-05-22.
- ^ Local Calling Guide: Area code/prefix search. Accessed February 14, 2012
- ^ Local Calling Guide: Area code/prefix search. Accessed February 14, 2012
- ^ Syringa Networks Retrieved 2012-05-03.
References
Links
- Fairpoint Webmail [1]