FairPoint is getting a $50 million infusion courtesy of the state of New Hampshire. Not a bad gig if you can get it. FairPoint will use the money to help shore up its financial situation, which is deteriorating quickly. The Concord Monitor (by way of Fierce Telecom) reports “the New Hampshire Public Utilities Commission on Tuesday gave the company permission to use the money to boost liquidity and cope with financial instability.” In return, FairPoint committed to spend $65 million in New Hampshire in network upgrades by 2012.
FairPoint’s troubles with the Verizon acquisition have been well documented. They’re struggling both operationally and financially with the network expansion. FairPoint has gone as far to say they may consider restructuring if their financial troubles don’t subside. FairPoint’s situation has gained renewed interest, given the recently announced Frontier-Verizon deal. The new Frontier deal is drawing comparisons to the FairPoint deal, adding ‘cautionary tale’ ammunition for some skeptics who think smaller rural carriers may be biting off more than they can chew with these RBOC rural access line divestitures.
