Consolidated Communications of Illinois will take over FairPoint
“The combined company will be more financially stable than FairPoint on a standalone basis, with stronger credit ratings, more flexible access to capital, and greater revenue and cash flow diversity,” the board said in its decision, released Monday evening.
In a memorandum of understanding with the state Department of Public Service, Consolidated has agreed to invest an average of 14 percent of its Vermont revenues in the Vermont telecommunications network. The company also pledged to spend $1 million to address areas of the state where service has been unreliable. Those investments were key to the sale’s approval, the board said.
The company has also indicated it plans to introduce services not offered by FairPoint, including home security and various data services. With the acquisition, Consolidated will operate in 24 states.
The 37-page Public Service Board order was made by recently retired board chair Jim Volz and members Sarah Hofmann and Margaret Cheney.
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I don’t suppose this means that my internet will stop going out anywhere from 5 to 15 times a day, will it?
But probably couldn’t be worse than Fairpoint and their steady downward spiral in recent years.
Nothing like approving a company with a BBB “F” rating to take over for a “C-” company.
It’s obvious nothing will improve here for Vermonters. 14% of revenues being invested in VT? How are the funds to be invested, and who will hold Consolidated honest? Is there any stipulation that they can’t just spend all that money in Chittenden?
We are trailing the rest of the nation with our Internet connection coverage and speeds, and finding another company as barely able to keep up with their debt load as Fairpoint isn’t going to help (The fairpoint debt is rated Ba3/B3; these credit ratings means they’re classified as “junk bonds” or “not investment quality” or “not prime”, while the overall company is rated B1: “Highly speculative, junk bonds”)
planetacer09:
Out of curiosity, what is the source for your references of BBB ratings for these two companies? On the BBB site, both are listed as “not accredited” – meaning there is no rating?
Oh yeah, here we go again. No internet and very poor cell service at my farm. The land line is worse than it ever was. Which governor promised internet for everyone? Shumlin? Another failure.