FairPoint Communications (Nasdaq: FRP) wants to get back into the good graces of Vermont's consumers, and to do that it's going to settle the $7 million in service quality penalties by bringing broadband service into 51 communities in the state that currently don't have it.
Per an agreement FairPoint developed with Vermont's Department of Public Service, the broadband expansion will pay for the service quality penalties the regulator levied on the telco that arose after it began operating Verizon's former Northern New England telephone lines.
Elizabeth Miller, the Vermont Public Service Commissioner, and FairPoint jointly said that the new settlement will enable the state to reach Gov. Peter Shumlin's of making every Vermont community broadband capable by the end of 2013.
Reaching this agreement is a major turnaround for FairPoint in Vermont. Not only did Vermont regulators initially reject FairPoint's restructuring plan, but at one point they considered revoking their license to provide service in their state.
For more:
- Canadian Business via AP has this article
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