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www.no-deal.org New Hampshire Public Utilities Commission staff proposed a long list of financial and operational conditions to apply to Verizon's $2.7 billion transfer of its landline assets to FairPoint Communications, saying implementation of them would reduce substantial risks to the state. "The risks, particularly with respect to the financial viability of FairPoint, far outweigh the benefits of this transaction, and in its present form the transfer from Verizon to FairPoint cannot be found to be in the public good," the recommendation said. But it said suitable conditions could make the deal benefit phone customers and the state. The PUC staff proposed 11 conditions. They would restructure the financing for a better debt-to-income balance, change the merger's back-office transition agreements, require Verizon to cover some FairPoint transition costs and capital expenses, impose broadband buildout requirements on FairPoint, bar local rate increases for three years, require FairPoint to assume all current Verizon wholesale obligations, change FairPoint's corporate governance to ensure that New Hampshire has representation and put stronger controls on affiliate transactions. The staff said the deal's (Case 07-011) core problem is that FairPoint financial and operational projections are unreasonably optimistic. It urged the PUC to set conditions that will help protect the state if FairPoint's projections prove inaccurate.There are many, many more issues that need to be examined. This is just a snippet of what's wrong with this deal. For more in depth details, please go on-line to www.no-deal.org. This is a bad deal for consumers, tax payers, rate payers, our communities and for the economic growth of New Hampshire. |