Fairpoint Communications, Inc.(fka FRCMQ)

[fredman]

There’s a better than even chance Fairpoint Communications will file for bankruptcy. What that means to New Hampshire is unclear, though many will find opportunity in it. It’s unlikely service would be shut off, but monies that flow to local charities from Fairpoint would likely take a hit.

Earlier this year the state helped Fairpoint by letting it take out $50 million set aside by Verizon in a special account to fund big projects in the state, such as expanded broadband Internet options. In exchange, Fairpoint promised to spend $65 million in the state before 2012. It’ll be a hard promise for the state to enforce.

The problems at Fairpoint reflect the aged nature of how this state and most others regulate utilities. The Fairpoints of the world are no longer monopolies. They compete against a lot of local businesses that sell dish connections, cable connections, and phone and Internet service. That’s readily reflected in that neither Hippo nor I personally are customers.

While you never want to see a business fail, especially one such as Fairpoint with its employees, charitable giving and many local vendors, new business life springs from failure. That’s one of the more impressive qualities New Hampshire residents possess: when we lose our jobs many of us open our own businesses.

Source: http://www.hippopress.com/columns.html