Sale of FairPoint Comm: New Hampshire

Over the course of the last few months, a number of state regulatory agencies have considered the proposed acquisition of a local exchange carrier (LEC) group, FairPoint Communications, by a telecommunications conglomerate, Consolidated Communications Holdings. Soon after the FCC took action to authorize the merger to proceed, other states began to follow suit. New Hampshire relied on proposed settlements in ruling that the merger should be approved.

Northern New England Telephone Operations LLC d/b/a FairPoint Communications- NNE is also the largest LEC in New Hampshire, having assumed Verizon's landline operations in that state just as it had in Maine. And, similar to the takeover in Maine, the one in New Hampshire failed to yield the service improvements and expansions expected. In reviewing the proffered merger settlement, the New Hampshire Public Utilities Commission proclaimed itself satisfied that the parties had fully addressed FairPoint's earlier failings. More specifically, the commission cited those terms requiring minimum investment levels over the next few years. 

The commission stated the capital infusions, while not nearly as large as those in Maine, represent a proportionate commitment to further telecom infrastructure improvements and extensions in the state. The commission related that the merger applicants had consented to annual system investments totaling a minimum of 13% of in-state revenues. According to the commission, that would translate into an average in vestment of approximately $1 million a year. Per the settlement, the investment cannot be less than $700,000 a year. The commission said the monies would be directed toward those areas that have experienced higher-than-normal trouble reports and also would be used to augment both basic retail and wholesale services. 

The commission commended the companies for assuring employee protections, at least for the next two years. The commission also was pleased that the two-year transition period requires Consolidated to keep at least one executive in New Hampshire and to maintain a primary office in the state as well. Re Consolidated Communications Holdings, Inc. and FairPoint Communications, Inc., DT 16-872, Order No. 26,022, May 31, 2017 (N.H.P.U.C.).