Tag Archives: FairPoint

No cell service? No, thanks to Vermont’s telecom providers

Vanu CoverageCo’s utility pole-mounted cell phone relay devices were, it was hoped, part of the solution to the state’s rural coverage problem. But the company is now in financial trouble and  struggling to pay its own “phone bill.” They are in effect facing a shutoff notice from Consolidated Communications (formerly FairPoint Communications) for an outstanding bill of $100,000 for connecting the pole-mounted microcell devices to their landline network.

phonesoutIt’s worth recalling that over the last decade or more Vanu CoverageCo (along with several other telecoms including the problematic company VTel and FairPointnow Consolidated Communications) were recipients of a cornucopia of federal and state grants (our tax dollars) to encourage these businesses supply cell service to receptionless areas. Over the years, millions in funds and federal grants (our tax dollars at work) were approved and distributed through the Vermont  Telecommunications Authority. [The VTA, now “mothballed,” was a Vermont state hybrid agency established in 2007during the Douglas Administration. Created by legislation, the concept reportedly originated with Gov. Douglas’ Administration Secretary Mike Smith, who surprise, surprise!later became Vice President for Vermont affairs at FairPoint.]

And now Consolidated Communication’s threatened action which might shut down CoverageCo servicecould have a life-and-death impact: loss of emergency 911 capacities for a portion of the state. In legislative hearings on the issue state Senator Randy Brock (R- Franklin County) raised the alarm over CoverageCo’s possible demise: If we let this die on the vine, it’s hundreds or thousands of Vermonters without 911 cell service .Just wait until a couple of people die because there’s no coverage.”

And it is no small irony that Consolidated Communications (FairPoint’s successor) is the one forcing this issue on the state. The company was awarded the E-911 contract from the state in 2014: the contract offered to pay $1.8 million for the set-up, followed by a total of roughly $9.5 million for 60 months of operations and maintenance. FairPoint struggled for years with consistently poor customer service issues and at one point was heavily fined by Vermont, Maine and New Hampshire. FairPoint, struggling and on the verge of going down the tubes, prevailed on the state of Vermont. FairPoint executives successfully lobbied the state into a deal on the fines. “Benevolently” Vermont regulators agreed to waive $7 million in assessed unpaid penaltiesproviding that the same amount be redirected by FairPoint for statewide broadband build-out. It is not clear if any accounting was ever undertaken to guarantee this million dollar build-out would or ever did actually happen.

Not sure how  FairPoint may have thanked the state for the $7 million favor, but now re-born as Consolidated Communications, the company thinks nothing of squeezing CoverageCo  over $100,000an action that may cause parts of the state to not only lose cell service but potentially lifesaving emergency 911 service. Well, thanks a lot, Consolidated. Get ready to “Console” the survivors.