State OKs Net access expansion

A plan put forth by Verizon and the Maine Public Advocate’s Office and approved by state regulators this week will expand high-speed Internet access across the state and boost competition among service providers, possibly lowering the price of Internet and telephone service, according to the Public Utilities Commission.

“Deploying broadband in Maine isn’t easy, but it’s absolutely essential for businesses and for how we live,” PUC Chairman Kurt Adams said Wednesday.

In recent years, Verizon has not been investing in its Internet services at the level its competitors have, Adams said. As more customers leave Verizon for other service providers, such as Time Warner, Pioneer and Mainely Wired, among others, Verizon customers risk seeing their rates increase, he said.

A deal approved by the PUC Tuesday requires Verizon to invest $12 million in DSL broadband Internet service installation from Freeport to The Forks, Adams said. A list of specific expansion locations was unavailable Wednesday.

In six months, broadband is to be available to 70 percent of Verizon land-line customers, up from the present availability rate of 63 percent. Those figures signify the introduction of high-speed Internet to almost 35,000 Mainers. Verizon has also agreed to complete the expansion using entirely new equipment.

In return, the state has agreed to put a hold on its review of Verizon’s telephone rates, also called the AFOR case. AFOR stands for Alternative Form of Regulation. The review will continue after the PUC has made a ruling on the sale of Verizon’s land-line and cable Internet services to FairPoint Communications Inc.

Public Advocate Richard Davies and Adams have said the $12 million is not to come from ratepayers, but from Verizon’s own profit margin. Some Verizon services, such as telephone service, are regulated by state government. Other services, such as broadband and business assistance, are unregulated and make Verizon as much profit as the market will bear. The $12 million will not come out of the pockets of customers using regulated services, Davies said.

Should the deal between Verizon and FairPoint reach an outcome before the six-month broadband expansion period, the balance of the $12 million will go into an escrow account for either Verizon or FairPoint, whichever company ends up with the Internet services, to use to complete the expansion.

The broadband expansion plan is the second one since early July to have been submitted by Verizon and the public advocate for approval.

“We weren’t satisfied with the first version because it lacked a clear enforcement mechanism, so we rejected it,” Adams said in a prepared statement Tuesday. “This amended agreement addresses our concerns. If the DSL investment does not proceed as planned, we will hold Verizon accountable.”