FairPoint Communications Inc. has announced plans to spend $44 million more than the $200 million it planned for back-office infrastructure when it revealed plans to buy Verizon’s operations in New Hampshire, Maine and Vermont.
The provider of communication services to rural and small urban communities also plans to create 675 jobs in the three-state region as opposed to initial goal of 600 detailed in January. FairPoint said the deal will close in January 2008.
The added investment in job creation is welcome news in and beyond the largely rural three-state region perhaps better known for year-round tourism and seclusion than large corporate headquarters of commercial products makers.
As part of its broadband plan, FairPoint intends to invest an initial $13.8 million in the expansion of broadband services in Vermont and a total of approximately $44 million in all three states combined.
The company said the broadband strategy being introduced in Vermont will be similar to the network being developed for Maine and New Hampshire.
“Our customers enjoy, on average, 92 percent broadband accessibility in the markets we currently serve and we intend to keep improving that availability level,” said FairPoint Executive Vice President Walter Leach Jr., in a statement. “We intend to continue expanding broadband in Verizon’s current markets, where only approximately 62 percent of the customers have access to a Verizon broadband product today, so that those markets reach that same high level of service.”
More specifically, FairPoint is proposing to execute a multiyear network enhancement plan with a major kick-off investment during the first 18-24 months following the merger. Its goal is to extend broadband services to an additional 41,000 access lines in Vermont alone.
FairPont said details for the plans in Maine and New Hampshire will be released in a few weeks.
The network design that FairPoint is developing consists of a three-tiered approach to building an advanced next generation network capable of supporting existing subscriber needs and also providing a platform for the future.
The carrier said the plan will utilize FairPoint’s core network, capable of providing access to the Internet and advanced services such as IPTV and high-speed data, to markets such as Burlington, Montpelier, Brattleboro, St. Johnsbury and Rutland in Vermont. The equipment proposed for the core part of the network is capable of 10gbps transmission rates using IP/MPLS.
The next tier of the network, serving markets such as Concord, Troy and West Burke, according to FairPoint, will utilize Multi Service Access Nodes (MSAN), with transmission rates from 1gbps to 10gbps, providing transport to the core and access networks. Each of the central offices in this tier connect to neighborhoods via digital loop carriers. This equipment will also support advanced services such as IPTV.
The third tier of the network is the last mile link, which is primarily copper. FairPoint said it is proposing to begin extending broadband service to areas presently not served by deploying either ADSL2+ or VDSL2 broadband technology over the existing copper cable.
These technologies are capable of delivering up to 25mbps and 100mbps of bandwidth depending on loop length. This same MSAN equipment is also capable of providing fiber-to-the-home, from the same chassis already connected to the core network.
FairPoint stressed it does not intend to replace the existing Verizon DSL equipment on a network-wide level in this plan. Instead, it will first concentrate on expanding the broadband network into communities that do not have access to broadband services.
FairPoint Communications Inc. www.fairpoint.com
Verizon Communications Inc. www.verizon.com
