FairPoint to install broadband in 51 Vermont communities in lieu of paying $7 million fine

FairPoint Communications reached an agreement with the state of Vermont to install broadband in 51 communities that currently do not have access to broadband services instead of paying a $7 million fine.

A while back, FairPoint took over Verizon’s landline service that serves the New England area and ran into severe quality of service issues.  The State of Vermont held hearings and ordered FairPoint to pay the multi-million dollar fine.

Public Service Commissioner Elizabeth Miller and FairPoint worked out an agreement that was amenable to both parties.

Vermont’s Department of Public service will work with FairPoint to create a plan to bring broadband service to 51 areas in the state that do not have any broadband services.  In return, the $7 million fine was waived.

Governor Peter Shumlin has a plan to bring broadband access to everyone in the entire state by the year 2013.  This agreement will help Governor Shumlin toward achieving his goal.

This is truly a great deal for both the state and FairPoint.  Although details are not available at the moment, FairPlay should gain a sizable customer base in those communities and that should add some revenue to the company’s bottom line.