FairPoint deliberations set to begin

PORTLAND – The Maine Public Utilities Commission begins deliberations Thursday on FairPoint Communications’ proposal to buy Verizon’s landline telephone operations in northern New England for $2.7 billion.

The three-member commission could issue a decision Thursday on the deal, which also must be approved by regulators in New Hampshire and Vermont. If there’s no decision, deliberations would resume on Dec. 20.

Representatives from FairPoint and Verizon, Maine’s public advocate and PUC staff have held closed-door meetings in the past week in an effort to reach a settlement that is agreeable to all. Labor unions, local phone companies and other intervenors in the case also have participated in the meetings.

FairPoint, based in Charlotte, N.C., wants to take ownership of Verizon’s 1.6 million access lines, along with Internet service, in northern New England. Verizon would retain its wireless phone operations in the region.

A PUC staff report last month recommended that the proposal be rejected unless the companies satisfy dozens of conditions.

The most controversial conditions would require Verizon to lower the selling price by $600 million and make FairPoint cut its dividends to shareholders by 30 percent, spend more to expand high-speed Internet and meet stronger quality standards for service.

The meetings among the parties in Maine have been confidential, and the negotiating parties have signed agreements not to discuss the details publicly.