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FairPoint Halts Verizon Transition Until January

September 22, 2008

Citing lack of readiness in its move to run Verizon’s landline services in Northern New England, FairPoint Communications on September 15 pushed the “cutover” back to January 31 – the date FairPoint will assume control of the lines.

This is the latest in a series of delays dating back to May, when FairPoint first announced it had yet to establish proper office infrastructure, recruit staff and train new hires for the changeover. Verizon sold its lines to FairPoint in March for $2.4 billion and is letting FairPoint use its equipment until the transition goes through.

A FairPoint spokesperson told the Nashua Telegraph that “the activity is monumental in terms of what we needed to do” in order to ensure a steady transition.

IBEW leaders – representing more than 2,200 former Verizon employees now with FairPoint – say that moving slowly is prudent but also expressed concern with FairPoint’s ability to stay competitive in the market.

“As long as FairPoint remains tethered to Verizon, the delay prevents the company from rolling out new products,” said Augusta, Maine, Local 2327 Business Manager Pete McLaughlin – who is also Chairman of System Council T-9, which represents telecom locals in Maine, New Hampshire and Vermont. “Every month that goes by that we’re not a solid company, we’re losing competiveness. Are we taking a hit? Yes, but it’s better to go slow and get it right than to push it.”

March’s Verizon-FairPoint deal resulted in a significant number of IBEW members opting for retirement rather than continuing with the new company. FairPoint is seeking new hires to shore up their work force.

“We’re slowly gaining new members to staff FairPoint, but we’re behind where we were,” McLaughlin said.

Part of FairPoint’s responsibilities to facilitate the changeover is to prove its readiness to Liberty Consulting Group, a company assessing FairPoint’s status. The consultant was hired as a third party last December by the Vermont Public Service Board and the Maine and New Hampshire Public Utilities Commissions to monitor the FairPoint-Verizon deal. FairPoint is paying the consultant for its oversight services.

Liberty will issue another report in November indicating whether the deal will go forward in January or if another delay is in order. If Liberty gives FairPoint a green light to go ahead with the transition, the company is must to complete all tasks to become self-sufficient by January 31. No additional extensions will be allowed.

“It’s important that the cutover be done carefully as FairPoint works to make the changes they need to be operational after the new year,” International Representative Bob Erickson said.

Initially opposing the sale of Verizon’s landlines to rural telecom provider FairPoint, more than 2,500 IBEW and CWA workers successfully pressed for vital concessions from the companies. The IBEW also went to bat for nonunion FairPoint employees, helping more than 100 workers obtain union representation in Washington state, Virginia and Maine.

See the October issue of The Electrical Worker for more information on IBEW victories at FairPoint.

Photo used under a Creative Commons license from Flickr user jaybergesen.