State regulators have approved the sale of FairPoint Communications to an Illinois-based company that announced in December its intent to buy the phone and internet company.
The Public Service Board, which regulates landline phone companies, issued its unanimous decision to approve the sale to Consolidated Communications Inc. on Monday evening.
The board cited Consolidated’s settlement with the Public Service Department, whose role is to advocate for ratepayers in front of the board. The settlement requires the company to invest 14 percent of total revenue back into its network — which amounts to more than $50 million per year — for three years.
“The combined company will be more financially stable than FairPoint on a stand-alone basis, with stronger credit ratings, more flexible access to capital, and greater revenue and cash flow diversity,” the board wrote. “This financial base should enable Consolidated to better serve Vermont customers.”
“Consolidated is committed to providing superior service quality through its established system for identifying and remediating areas of a network that experience consistent out-of-service problems, which we expect will improve service for many Vermont customers,” the board wrote.
Vermont was one of the key states where the sale was still pending. Regulators in Maine approved the sale in May. New Hampshire regulators approved the deal June 1.
