Allegations of deception in FairPoint takeover
(NECN: Anya Huneke, South Burlington, VT) – The problems continue to mount for FairPoint Communications. The new phone provider for northern New England has been under fire for service problems ever since it took over for Verizon. Now there are accusations the company faked its readiness. Mike Spillane has been sounding the alarm for more than two years– ever since it became known that Fairmont Communications was looking to take over Verizon’s landline system in northern New England. Mike: “We very aggressively fought the takeover. We were worried about the financials, amount of debt it was taking on from Verizon.” As business manager for the local IBEW in Essex Junction, Vermont, his concern is for telephone workers in the state. Mike: “For us, we only have a job as long as we’re delivering reliable service the customer pays for.” But reliable service, he says, has not been the norm for FairPoint customers in Vermont, New Hampshire, and Maine during the now 7-month transition. And he believes this e-mail could help explain why. Mike: “It’s the only thing that makes sense, because we have no explanations for why the systems are not working.” An anonymous whistleblower contacted Vermont utility regulators earlier this month. The e-mailer – who called himself ‘David unavailable’ – alleged that FairPoint used deception to convince consultants hired by the states that the company was ready to deliver service, by faking demonstrations. Steve Wark\PSD: “We received an anonymous e-mail that indicated the software verification process was not accurate… and falsified.” Steve Wark of the Vermont Public Service Department says all three states are investigating the charges- to determine, first, if they are legitimate. Steve: “If the allegations are true, we’re deeply concerned… and we’ll need to make significant changes in how the company is monitored.” In fact, the state was concerned about FairPoint prior to this e-mail. It had launched a probe into whether to revoke FairPoint’s right to do business in Vermont– due to overwhelming customer complaints about billing errors and service delays. Jeff Wheel\GM, Advance Music: “Really there have just been so many problems.” Regulators from Vermont, New Hampshire, and Maine will have a hearing on the issue in September. Meanwhile, FairPoint has addressed this issue in a statement, saying the company takes the allegations seriously and will do a thorough investigation. The Vermont Public Service Board has requested that FairPoint respond to the allegations by August 31st… and a spokesperson for FairPoint says the company plans to do just that.
