FairPoint Service Problems May Lead To Hefty Fines

Verizon wasn't perfect on customer service, either.

The Maine PUC routinely fined the company hundreds of thousands of dollars for failing to reach benchmarks. Verizon was fined nearly $1.3 million in the 2006-2007 assessment period, $711,657 in 2005-06 and $639,127 in 2004-05. The company paid no fines in 1999-2000 after meeting the benchmarks.

In Vermont, there were years when Verizon paid $8 million or more in penalties for failing to make the grade, regulators say. New Hampshire didn't have automatic penalties attached to its benchmarks when Verizon owned the network. But the rules were changed for FairPoint.

As it stands now, it won't be a pretty sight when it comes time for regulators in the three states to review FairPoint's performance.

"Speaking from telecom, this is beyond the level of service problems I've seen before. And we are very concerned about it," said Kate Bailey, head of the New Hampshire Public Utilities Commission's telecommunications division.

It's in FairPoint's best interest, of course, to provide good service. By doing so, the company can avoid fines, which are paid to customers in the form of rebates. More important, good service help companies retain customers and win new ones.