Fairpoint announces rate cut, coverage changes

    Officials with FairPoint Communications have announced that many customers in areas of Maine formerly served by Verizon will soon see rate decreases in their upcoming bills. The rate decrease is the result of an agreement among FairPoint and other parties, which was included in the Maine Public Utilities Commission (MPUC) order approving the merger of Verizon’s northern New England landline business into FairPoint Communications.
    The rate decrease is in addition to other benefits which FairPoint is bringing to Maine as a result of the merger, such as the creation of additional jobs, expanded investment in broadband and its economic development initiative.
    Last week FairPoint began notifying eligible customers about the rate decreases. In their December 2008 bill, most phone service customers will see a one-time credit ranging from $8.47 to $32.10 per line, depending on the customer’s calling plan. For many residential customers, this credit will be $19. Currently, Verizon is billing customers on behalf of FairPoint.
    Beginning in January 2009, eligible customers will also see a monthly credit on their bills until FairPoint transitions to its own billing system. FairPoint expects to transition to its own billing system effective the end of January 2009. Upon completion of the transition, the decreased rates will replace the credit on the bills.
    “This is good news for our customers in Maine,” said Peter Nixon, president of FairPoint. “We believe that these decreases will greatly benefit our customers in these difficult economic times. These customers will notice a credit in their bills in December and their monthly charge will be going down.”
    The monthly rate decrease beginning in February 2009 varies based on the customer’s calling plan. For example, residential customers enrolled in a Premium calling plan will see nearly a 24 percent decrease in their basic monthly rate. The rate will go from $19.29 to $14.69 after the rate decrease is implemented.
    Residential customers currently enrolled in an Economy calling plan will see their basic monthly rate decrease from $17.79 to $14.69. In addition to the rate decrease, Economy plan customers will have their calling areas expanded to the same calling areas as in the Premium plan. The chart below provides specific details for the credits and the rate decreases.