FairPoint Communications, Inc. was headquartered in Charlotte, North Carolina, and operated communication services in 31 markets in 17 states, mostly in rural areas. FairPoint services include local and long distance phone service, data, Internet, broadband, television, business communications solutions and fiber services. FairPoint, along with Frontier Communications, had been at the forefront of acquiring Verizon landline operations.
In 2007, FairPoint had about 330,000 access points or customers. In that year, Verizon Communications announced plans to sell its landline operations in Maine, New Hampshire, and Vermont to FairPoint for $2.7 billion. Of that amount, $1.7 billion would go to Verizon Communications in cash and debt and approximately $1.015 billion would go to Verizon shareholders in FairPoint common stock. Verizon would hold no stock. After extensive federal and state regulatory review and approval, the purchase became effective March 31, 2008, for a price of $2.4 billion. State regulators sought a lower figure out of concerns that excess debt would hamper service and expansion. Approximately 1.6 million phone customers and 230,000 internet users in the three states were added to FairPoint's customer base, with the result that the Northern New England customers represented 85% of FairPoint's customers. This increase made FairPoint Communications the 8th largest phone company in the United States.
Bankruptcy
On May 5, 2009 FairPoint indicated in its First Quarter 2009 Report that it was "considering engaging a financial advisor to evaluate its current capital structure and to explore options with respect to a potential restructuring." It also acknowledged that it was "at risk of failing to comply with the interest coverage covenant contained in its credit facility as early as the covenant measurement period ending June 30, 2009." On October 26, 2009, FairPoint Communications filed for Chapter 11 bankruptcy protection. The company emerged from bankruptcy in January 2011. Verizon later lost its remaining money it made on the sale.
On October 14, 2014, FairPoint Communications froze the pensions of nearly 2,000 employees who had built, maintained, and serviced vital telecommunications infrastructure throughout Maine, New Hampshire, and Vermont. The company had already stopped providing retiree health care and support for child and elder care. Workers said that this was all part of FairPoint’s plan to turn their good middle-class jobs into low-wage temporary jobs. Leaders of the International Brotherhood of Electrical Workers and the Communications Workers of America said that FairPoint management abandoned the bargaining process on August 27 after refusing to compromise on any substantive issue since negotiations began. FairPoint replaced striking workers with contingency workers from as far away as Oregon and California. The replacement workers struggled to maintain normal service as a series of nor'easter storms brought rain and snowy winter conditions to the three-state area.
In December 2016 FairPoint was purchased by Consolidated Communications for $1.5 billion including assumption of debt. The acquisition closed in July 2017. The combined company operates under the Consolidated Communications name.
Local operating companies
FairPoint owned the following operating companies:
