[OT] Verizon/FairPoint sale (was: Comcast!?!?)

[Ben Scott]

On Nov 12, 2007 7:41 PM, Jim Eden <jeden at 108productions.com> wrote:
> go to http://puc.nh.gov/Telecom/VerizonSaleToFairpoint.htm and read the
> testimonies from David Brevitz and Susan M. Baldwin from the Office of
> the Consumer Advocate.

  Good link.  Unfortunately, most of the potentially useful
information in those specific documents has been redacted in the name
of corporate confidentiality.  This makes them rather less useful.

  There is quite a bit of discussion about the finances of FairPoint;
unfortunately, my understanding of finance is far too limited to
understand it.  It sounds scary, but big finance *always* sounds scary
to me.  Still, the idea that FP might turn into another Vitts Networks
is distributing, to say the least.  (For those who don't know, Vitts
was a CLEC in NH.  Their investors pulled out, leaving them with no
money.  Vitts tried to close their doors overnight.  The NH PUC made
them stay open for another 60 days, but it was still a disaster for
their customers.)

  One thing I do note is that many of the potential risks to FairPoint
apply also to Verizon.  Market conditions, interest rates, etc.  Now,
I expect Verizon is likely to be a safer bet due to bigger cash
reserves; but I dunno.

  I do note that in several places, said testominoy *does* mention
that Verizon has been neglecting the PSTN infrastructure in NH, to the
point of serious disrepair and obsolescence.  This does not instill me
with confidence that Verizon is serving NH well.

> Fairpoint charges $34.95 for 384k/256k

  As opposed to the complete lack of DSL Verizon provides in many
areas?  And let's not even talk about FiOS, which is still vaporware
in most of NH.

  It's likely that as a consequence of lower population density, fixed
plant costs must be borne by a smaller number of subscribers, thus
making their per-subscriber costs higher.  That's basic economics.

> Fairpoint is not a communications
> company, there a holding/acquisition company.

  Oh, please.  As if Verizon, nee Bell Atlantic, nee NYNEX, nee New
England Telephone is any different in that regard.  Telcos are big
businesses, and have been for about a century.

> http://www.no-deal.org/

  I've been to that site.  It's mainly a collection of links to news
articles, and not particularly informative ones.  Not useful.

-- Ben