WASHINGTON – Federal communications regulators on Wednesday cleared the way for Verizon Communications Inc. to sell its phone lines in Maine and two other New England states for $2.7 billion to FairPoint Communications Inc.

FairPoint’s stock increased 57 cents – or 5.7 percent – to $12.69 in afternoon trading, while Verizon shares added 48 cents to $42.47.

The Federal Communications Commission – in a 3-2 vote – said the proposed sale of Verizon’s phone lines in Vermont, New Hampshire and Maine will “unlikely” result in any anti-competitive behavior or hurt the public interest.

The deal still needs formal approval from all three states.

Under the deal, announced in January 2007, FairPoint would get Verizon’s telephone operations, which serves about 1.6 million homes, along with Internet service. Verizon will retain its wireless phone operations in the region.

The FCC said the deal would enhance service in the region through investment, speed up deployment of high-speed Internet or broadband service, and create 700 jobs.

The commission’s two Democrats, Jonathan Adelstein and Michael Copps, voted against it.

Adelstein said, “Inexplicably, there are no special measures in this order to address the concerns about broadband deployment, wholesale service, or service quality for customers in these three states.”

FairPoint also said Wednesday that it reached an agreement with Vermont’s Public Service Department to buy Verizon’s operations in that state. Vermont regulators previously rejected the sale, saying that the deal would leave FairPoint saddled with too much debt and unable to invest in high-speed Web service.

The deal now goes to the Vermont Public Service Board. FairPoint said the Public Service Department will urge those regulators to approve the sale subject to certain conditions, including its commitment to invest about $120 million over three years after the sale closes.

Maine regulators have approved the deal but have not yet issued a formal order. New Hampshire regulators have not signed off on the deal yet.