Fairpoint Accused Of Faking Network Readiness Test - Things get worse for embattled telco...
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Fairpoint Accused Of Faking Network Readiness Test
Things get worse for embattled telco...
06:37PM Tuesday Aug 25 2009 by Karl Bode
tags: legal · business · telco · trouble · consumers · Fairpoint Communications
We've well documented how Fairpoint Communications has all-but imploded from the acquisition of Verizon's Maine, New Hampshire and Vermont DSL networks. The carrier has skirted close to bankruptcy, faces state investigations for incompetence, and is now looking at a possible delisting by the NYSE. Now the company is being rocked by allegations from an anonymous whistle blower who claims the company worked in collusion with a consultant to fake network readiness tests in order to gain regulatory approval:
The e-mail was sent to regulators from “David Unavailable” on Aug. 14. The writer said he had to remain anonymous because "my relationship with FairPoint would be jeopardized." ... He says he is certain that one test was faked. He says FairPoint and CapGemini workers set up phony circuits to display false information. They used "a newly created small program that used screen shots from the real system to deceive the audience into believing that they were watching a real demonstration," the e-mail says.
Fairpoint subsequently went on to suffer through a series of integration delays, as well as serious 911 emergency service issues. "We take these allegations seriously and will do a thorough investigation," Fairpoint's CEO David Hauser says in a prepared statement.

Related:
  1. AT&T Aims Its PR Guns At Connecticut
  2. FairPoint Delays Full Takeover of Verizon Networks
  3. Wednesday Evening Links
  4. Wednesday Evening Links
  5. Bright House Slams Verizon On FiOS Grounding
  6. Real Consumer Group Takes Aim At Fake Ones
  7. Unions Blame Verizon For Fairpoint Disaster
  8. Oregon Regulators Not Thrilled With Frontier Deal
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Opticwonders @ 25th Aug 06:41PM:
Funny you should mention...

Just saw this on the evening news... very interesting but certainly not surprising.
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hayabusa3303 @ 25th Aug 06:49PM:
how much longer before

att buys them out.... :D
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swintec @ 25th Aug 06:54PM:
Good god

I swear this entire mess has gone from laughable to beyond ridiculous. I can see the government is most likely going to have to step in and do something about these clowns. It seems like every week this company is in the news up here about SOMETHING they have fudged up.
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zed260 @ 25th Aug 07:11PM:
Re: how much longer before

well probably any day now
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Mike @ 25th Aug 07:20PM:
Re: Good god

That was Verizon's entire intention.

Sell it to eager morons to break it up and buy it back pennies on the dollar.
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en102 @ 25th Aug 07:31PM:
Re: Good god

Verizon's first intention was to devalue its rural assets to:

1. Make it easy to sell (nobody wants rural landline business these days)
2. Claim it as a loss so that it can get a huge tax break
3. Enjoy failure of new incumbent landline company
4. Deploy wireless and WLL / LTE and make more money.
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TKJunkMail @ 25th Aug 08:03PM:
True?? Maybe or maybe not; time will tell

Anonymous accusations without documented evidence are suspect. Could just be a union official trying to stir the pot and continue to blacken Fairpoint's reputation because the union didn't want this spinoff to occur.
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sonicmerlin @ 25th Aug 09:40PM:
Re: True?? Maybe or maybe not; time will tell

Seeing as how most of what you say goes against common sense and basic logic, and that this whistle blower is obviously putting his job in a difficult position by trying to be the anonymous informer, I highly doubt it.
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hottboiinnc @ 25th Aug 10:14PM:
Re: how much longer before

never. att doesnt want them or they would have already picked up the market. Plus now with the Dems. ATT won't be getting much of anything. Why do you think the ATT/Cent Wireless deal is taking so long?
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hottboiinnc @ 25th Aug 10:18PM:
Re: True?? Maybe or maybe not; time will tell

why? the union didn't want them taking over they wanted to keep VZ but yet bitched that VZ wouldn't maintain the network.

I call the Union on this one as well.
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tim_k @ 26th Aug 01:41AM:
Re: Good god

said by Mike :

That was Verizon's entire intention.

Sell it to eager morons to break it up and buy it back pennies on the dollar.
I don't think Verizon is interested in any copper plant. I wouldn't doubt that their long term plan is to have nothing but fiber and wireless.
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KrK @ 26th Aug 02:04AM:
Re: how much longer before

said by hottboiinnc :

Why do you think the ATT/Cent Wireless deal is taking so long?
Because frankly AT&T isn't keen on it anymore, When the economy tanked, the numbers went south, and now they are dragging their feet.

AT&T doesn't want Fairpoint. Remember we're talking about the dregs Verizon dumped because they didn't want them. The only way either of these two would pick this back up again is if they basically got it handed to them for free. And probably they'd demand some concessions from regulators on top of that!
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KrK @ 26th Aug 02:10AM:
Re: True?? Maybe or maybe not; time will tell

said by TKJunkMail :

Could just be a union official trying to stir the pot and continue to blacken Fairpoint's reputation because the union didn't want this spinoff to occur.
Anonymous accusations without documented evidence are suspect..... but baseless speculation apparently is ok...

It could ALSO be that the Unions had concerns about Fairpoint's financial position and ability to pull this off. Concerns that seem to be borne out by the chain of events.... and which jive with the CWA's statements BEFORE the merger happened.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

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KrK @ 26th Aug 02:12AM:
Re: True?? Maybe or maybe not; time will tell

Yeah, it's gotta be the union spreading FUD. Uh, whatever.

The only thing the Union is guilty of is seeing the writing on the wall about the merger and being RIGHT about the outcome.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

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PaulHikeS2 @ 26th Aug 08:28AM:
Re: True?? Maybe or maybe not; time will tell

said by KrK :

said by TKJunkMail :

Could just be a union official trying to stir the pot and continue to blacken Fairpoint's reputation because the union didn't want this spinoff to occur.
Anonymous accusations without documented evidence are suspect..... but baseless speculation apparently is ok...
Neither are OK...I imagine the point is that without documented evidence, TK's baseless speculation has about the same credibility as the undocumented allegation, at least until corroborating evidence is provided.
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anon @ 26th Aug 11:24AM:
Not really news

It's kind of obvious. The regulators were shown a system that had orders flowing from start to finish, but once the actual cut took place, suddenly nothing worked right. And still does not work right. I may not be the sharpest tool in the shed, but...DDUUHHH!!!!!!!!!!!!!
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KrK @ 26th Aug 12:10PM:
Re: True?? Maybe or maybe not; time will tell

Well, I did find it amusing that he said "Anonymous accusations without documented evidence are suspect....." and then followed it up with some pure speculation. "Probably the Union..." etc :D
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

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cork1958 @ 28th Aug 04:21AM:
From the sounds of it

I'm not being impressed about this acquisition. Fairpoint is supposed to be taking over Verizon's stuff here in Michigan sometime in the future.

Not looking forward to that, from what I've been reading. May have to go back to Charter cable when and if this happens.
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hottboiinnc @ 28th Aug 10:31AM:
Re: how much longer before

ATT NEEDS CentWireless to cover MANY of their gaps in the Midwest, mainly in MI and Indy.

Cent will take and cover those without a problem, especially when CentWireless is the only provider expect for VZW (formally Alltel Wireless).

ATT isn't dragging their feet, they just want to make sure they can take CentWireless and some of Alltel Trust with them.
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anon @ 2nd Sep 08:10PM:
Re: From the sounds of it

LET'S MAKE THINGS SIMPLE. VERIZON HAD A COMPANY BOGGED DOWN IN HUGE DEBT. ITS LAND-LINE CUSTOMERS WERE LEAVING IN DROVES FOR WIRELESS SERVICE, LEAVING LITTLE HOPE OF RECOVERING THEIR INVESTMENT. FAIRPOINT COMES ALONG, PAYS SOME CASH AND TAKES ON THE HUGE DEBT. FAIRPOINT GOES BANKRUPT, THE DEBT PART DISAPPEARS IN BANKRUPTCY COURT, AND THE REMAINING DEBT FREE COMPANY IS SOLD OFF TO A RELIABLE COMPANY (THE WHITE KNIGHT) TO COME SAVE OUR DIAL TONE......IT WAS A WELL THOUGHT OUT PLAN BY VERIZON. NO-ONE ELSE WOULD BE STUPID ENOUGH TO TAKE ON SUCH A LEMON OF A COMPANY (PLANT-WISE) TO BELIEVE THEY COULD MAKE MONEY HERE. IT'LL BE A BARGAIN FOR SOMEONE VERY SOON........
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anon @ 2nd Sep 08:02PM:
THE UNION????

COME ON NOW......THE UNION COLLECTS DUES AND IN RETURN ITS MAIN GOAL IS TO PROTECT THE UNION MEMBERS(IE: THE DUES PAYERS) WHAT PURPOSE WOULD IT SERVE THEM TO DRIVE THE EMPLOYER OUT OF BUSINESS FORCING LAYOFFS OF ITS MEMBERS? THE UNION WAS AGAINST THIS BECAUSE THE MEMBERS HAD FIRST HAND INFORMATION ON THE DETERIORATING COPPER PLANT THAT VERIZON TOUTED AS BEING PERFECT FOR DSL...IT'S GREEN AND BLUE DISINTEGRATING COPPER THAT BARELY HANDLES A POTS LINE.....THEY WERE SELLING A LEMON AND CALLING IT LEMONADE....PUC'S DIDN'T LISTEN AND NOW IT'S THE UNIONS FAULT? TRY AGAIN.......
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