Fairpoint files for Chapter 11

Bill McGonigle bill at bfccomputing.com
Wed Oct 28 18:12:35 EDT 2009


On 10/27/2009 08:11 PM, Jon 'maddog' Hall wrote:
> I went to a presentation the other night where a person from Fairpoint
> said that they had just put in a new Terabit switch as one of three they
> had installed in New Hampshire.  They are going after the broadband
> business, and will probably lump "POTS" on top of that.  They indicated
> that Verizon had not done much in the way of real improvement to rural
> areas (as opposed to Nashua or other cities) for a long time.

They only ever expected to make money in the video (over ADSL2)
business.  Nobody ever thought they had enough reserve capital, it was a
debt-leveraged play, and a crashed economy certainly bollixed their
business plan.

The trouble with Chapter 11, though, is who's going to extend them
credit from the vendor sphere?  They're holding a license to defraud
their creditors.  'Cash on the barrel' would seem to be the acceptable
terms.

Is anybody aware of any actual video roll-out that's been done?  One
would think they'd have gone after revenue immediately, but that seems
not to be the case, at least in my area.

Maybe if this does crash and burn the PUC will get out of the
monopoly-granting business.  A man can dream, can't he?


-Bill

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Bill McGonigle, Owner
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