FairPoint to use federal funds to expand broadband service in rural Maine

“That, to me, resolves the major issues that we had suggested an investigation was necessary for, and I feel comfortable that they are honest about trying to provide exemplary customer service”, Recchia said. Under the federal program, FairPoint will be required, over a six year period, to make significant capital investments to construct network infrastructure and offer broadband speeds of at least 10 Mbps download and 1 Mbps uploads.

FairPoint Communications plans to take $80 million in federal funds to expand broadband Internet service to areas of Maine, where a company executive said “market forces can not support expansion”. The agreement still requires approval by the Vermont Public Service Board, which has scheduled hearings for September.

“As ratepayer advocates, the Department insisted as part of the settlement that FairPoint give credits to customers who experienced unacceptable delays in repairs of telephone service”.

FairPoint Communications has finally reached a proposed settlement with the Vermont Department of Public Service over complaints about service. Since concluding a hard labor negotiation earlier this year, FairPoint’s service quality has returned to normal levels, the worker’s strike has ended, and FairPoint has planned and implemented a variety of improvements to its SS7 network.

The Federal Communications Commission first established the CAF program in 2011 to accelerate broadband build-out to Americans living in rural areas who do not now have access to robust broadband services. “FairPoint’s network is critical to Vermont’s economy, yet we know that here and nationwide the telecommunications industry is going through tremendous technological change”, Fastiggi said.

“Our responsibility is to ensure that FairPoint continues to provide acceptable service to its telephone customers while allowing it to compete in this increasingly competitive telecommunications environment”, Porter said.

Investment in the expansion of broadband Internet access will be made by FairPoint, increasing the numbers to more than 28,000 Vermont customers.

FairPoint Communications has agreed to a settlement with the state after a nine month service quality investigation. The Public Service Board will consider the settlement agreement during scheduled hearings in September.

FairPoint says it has invested almost $100 million in its Vermont broadband network in since 2008, and has added 1,100 miles of new fiber.

Since accepting CAF II funding must be done on a state-by-state basis, the company accepted funds based on a number of factors including the totality of the business and each state’s regulatory model.