FairPoint (Nasdaq: FRP) has apparently made enough progress in overcoming the service challenges it had in Vermont by reaching a $1.6 million settlement with the state's Public Service Department (PSD) to fix any future problems it might encounter.
James Porter, the director of the Vermont PSD's telecom division, said that the ILEC has rectified most of the issues that it had encountered after it acquired Verizon's (NYSE: VZ) New England lines in 2009.
This is a far cry from where FairPoint was only two years ago. At one point, Vermont threatened to revoke FairPoint's operating license.
Previously, FairPoint reached a $7 million settlement with the PSD over older issues. To make up for those issues, it is working on expanding broadband services in the state.
Although state utility regulators still need to approve the settlement, Michael Smith, FairPoint's Vermont president, said in a Vermont Public Radio interview the settlement would enable it to "compete successfully against other telecom providers."
For more:
- The Boston Globe has this article
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