www.no-deal.org
Burlington Free Press - Verizon Fairpoint Deal
Divide and Conquer
http://money.cnn.com/
Verizon's $297.5 Million Financial Contribution: (a) Verizon will contribute $235.5 million to the working capital of Spinco immediately prior to the closing, and FairPoint shall use the $235.5 million to repay permanently within 30 days of closing the term loan or Spinco securities issued or incurred at closing;(b) Verizon will contribute an additional $25 million to Spinco's working capital just prior to closing and a further $25 million contribution to FairPoint's working capital on the second anniversary of the closing, to be used for New Hampshire projects.
NO Extra Money has been allocated for Vermont Projects.
Broadband: Among other commitments set forth within the NH Settlement: (a) FairPoint will provide broadband availability to 75% of its access lines in NH within 18 months of closing and 85% broadband availability within 24 months of closing; (b) FairPoint will spend at least $56.4 million on broadband infrastructure within 60 months of closing, with the requirement to provide broadband availability to 95% of its New Hampshire access lines and 75% broadband availability to access lines in UNE Zone 3 exchanges; and (c) at the time of closing, FairPoint will maintain all prices and speeds offered by Verizon for broadband Internet access service.
50 million more from Verizon to be used in New Hampshire only and they also get 75% availibilty within 18 months as opposed to what Vermont is being offered.
"with the goal of attaining 90% DSL addressability by the end of the five year period.
FairPoint further agrees that by the end of the five-year period it will reach 82% overall
addressability for FairPoint access lines in UNE Zone 3."
There's a huge difference between addressability(which is what Vermont is being offered) and the availibility(that New Hampshire is going to recieve)
New Hampshire is going to receive broadband access long before Vermont gets anything.
Why would Vermont want to settle for less than the other 2 States are going to receive?
VT statehouse hearing set for Thurs, Jan. 31
Mr. Randy Barber will testify for the IBEW and the CWA at a Senate Economic Development Committee hearing at 8:30 AM in Room 10 at the statehouse on Thursday, January 31. The committee is chaired by Senator Vince Illuzzi.
Mr.Barber is president of the Center for Economic Organizing.
The hearing was called after Speaker of the House Gaye Symington, Senate President Pro Tempore Peter Shumlin, Senate Committee on Economic Development, Housing & General Affairs Chair Vincent Illuzzi, and House Committee on Commerce Chair Warren Kitzmiller wrote to the PSB on January 16 with concerns about the impact of the proposed revised Verizon FairPoint proposal.
The elected officials wrote that the stipulation must, "ensure that FairPoint has the financial capacity to provide affordable broadband by the year 2010 to all residences and businesses in all regions of the state that Verizon serves. (30 V.S.A. Chapter 91, Sec. 8060(b)(1))."
The hearing invoking their statutory obligations established in Act 79, "the strong recommendation...that any company seeking to acquire the assets and network of Verizon New England, Inc. have the capabilities and intentions to furnish broadband services that are sufficient to meet the rapidly evolving needs of Vermont residents, businesses and institutions."
Barber will also provide an update to the Vermont House Commerce Committee at 11:30 AM in Room 35.
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.
