Merger FAQ

What is FairPoint Communications?

FairPoint Communications is a leading provider of communications services to communities across the United States. Incorporated in 1991, the company operates local exchange carriers that set the standard of excellence for the delivery of service to communities. FairPoint is the eighth largest phone company in the United States (based on access lines).

Today, FairPoint owns and operates 32 local exchange companies located in 18 states. The company offers an array of services, including local and long distance voice, data, television, Internet and broadband. The company has approximately 1.9 million access line equivalents across the United States.

FairPoint's leadership team has extensive experience and a long track record of successfully acquiring, integrating, owning, and operating local telecommunications companies and growing its consolidated operations.

What are the basics of the transaction with Verizon?

The northern New England operations of Verizon's wireline business have been merged into FairPoint.

The transaction combines the personnel, local exchange assets and associated wireline business activities of Verizon in Maine, Vermont and New Hampshire with FairPoint.

How does this transaction impact customers in northern New England?

This transaction is good news for customers in Maine, Vermont and New Hampshire. FairPoint is committed to providing broadband access to communities and is will execute a multi-year network enhancement plan across the region.

FairPoint is committed to:

• Increasing broadband availability
• Improving customer response times
• Enhancing high-speed data services
• Maintaining and improving the state-of-the art network infrastructure in all three states.

We continue to make substantial investments to build local service centers; similarly, we have begun and will continue to hire employees to increase our local operational presence and responsiveness to customer needs.

What new technologies or services can customers expect?

FairPoint plans to increase broadband availability and enhance high-speed data services. We are committed to maintaining and improving the state-of-the art network infrastructure in all three states. As new technologies and services are developed, FairPoint will work to ensure that northern New England benefits from them.

Will FairPoint provide customers with access to a faster Internet connection?

Broadband Internet connections provide greater speed and bandwidth than dial-up connections. FairPoint plans to increase overall broadband availability significantly from current levels in the northern New England region within the first 24 months after the completion of the merger

Providing widely available broadband services is a core part of FairPoint’s business strategy.

What is the difference between an Internet connection using cable lines versus one over phone lines?

Both cable modem and DSL services provide improved connection speeds over dial-up Internet service. Typically, many homes in a given area share the same cable lines for receiving high-speed Internet service. As a result, if numerous homes using cable modem service in a community are online at the same time, the connection speeds and available bandwidth for each home can be diminished.

The DSL service provided by companies such as FairPoint is not a shared service. So, a phone customer using DSL for high-speed Internet service should maintain a consistent level of connection speed and bandwidth while online, regardless of how many of their neighbors are also online at the same time. Current technology enables DSL to provide very high speed data and video services over existing phone lines.

Will FairPoint continue with the project that Verizon has started to bring fiber access network services to northern New England?

FairPoint will continue to support the fiber access network services, but will not market the product by the name "Verizon FiOS" because "Verizon FiOS" is a proprietary product that is a trademark of Verizon.

The fiber access network which Verizon deployed in southeast New Hampshire came with the merger. FairPoint plans to make the best use of the infrastructure it purchased from Verizon. The existing network and services will be supported and maintained by FairPoint. Expansion of the network is being evaluated at this time.

Will customers notice any changes in service or will they have to do anything differently after the transaction closes?

The only changes customers should notice during the transition will be the FairPoint name and customer service contact information on their bill. FairPoint will take care of everything else, ensuring a smooth transition.

Maintaining and improving customer service is the highest priority for FairPoint. We will cooperate with Verizon to ensure a seamless transition and we have retained the industry-leading technical experts needed to plan and execute the transition.

In December 2007 Verizon notified its customers in Maine, New Hampshire and Vermont who receive electronic, or paper-less bills, that it will cease offering that feature.

FairPoint plans to implement a paper-free billing system for customers once all systems are transferred to FairPoint which is expected in early fall. Until then, transferring customers may be able to use a direct bill pay system offered by their bank if they prefer a paper-free bill pay option.

How can I find out more about job opportunities with FairPoint?

You can check current job postings www.fairpoint.com.

How does this transaction serve the public interest?

FairPoint will work with state policymakers and political leaders to serve customer and public interests. We are particularly eager to work with civic leaders and customers on initiatives to expand access to advanced services for educational, health care, civic and economic development purposes.

This merger provides multiple benefits:

• Telecommunications service that is focused to meet the needs of the region, today and into the future
• Increased employment opportunities
• Infrastructure and community investment programs that benefit communities and the region as a whole

Business Customer FAQs

What are FairPoint’s plans for business services?

FairPoint is committed to significant investments in infrastructure and support for the telecommunications needs of the business community in northern New England. In addition to supporting the traditional existing Verizon business services, FairPoint is looking ahead, designing leading edge platforms that will deliver enhanced services and applications.

FairPoint announced plans for a fiber-based overlay MPLS/IP backbone that will serve Maine, New Hampshire and Vermont. This backbone will be unique to FairPoint and is engineered to be a highly reliable, flexible, and scalable platform for competitive Ethernet and IP-based services – services that will support the long-term competitiveness of business customers.

FairPoint understands that business customers have several competing service providers in northern New England and the company’s success will be measured by our ability to deliver and support high-quality, cost-competitive services that meet the needs of businesses.

Telecommunications services are critical to my business. How will FairPoint and Verizon manage the transition of these services so there is no disruption in service?

Both FairPoint and Verizon are committed to making sure there is no disruption for customers. Even before the transaction was announced in January 2007, many internal and external processes were identified and put into motion to ensure a seamless transition.

The structure of the transaction itself includes a period of time following the close date during which Verizon remains directly involved in the back office, installation and & repair support, and billing of services. This is referred to as the Transition Period and the roles and responsibilities of both organizations are clearly defined in a document called the Transition Services Agreement, described below. All sales functions became FairPoint’s responsibility immediately after the close date.

The Transition Services Agreement between Verizon and FairPoint is a detailed plan that allows Verizon to release responsibility and FairPoint to accept responsibility for specific functions over a period of time following the closing date of the transaction. This approach is designed to ensure continuity of service and support for customers. This process is being managed carefully by both parties and will involve extensive testing and verification prior to converting to the FairPoint systems.

The commitment of both companies to a seamless transition is augmented by regulatory oversight at both a state and federal level.

Which Verizon services that my company purchases today will be acquired by FairPoint and what will happen to the service levels and rates we are currently paying?

FairPoint will be assuming responsibility for all traditional Verizon services. For example, all Verizon local phone services (such as POTS or ISDN PRI) and most Verizon long distance calling plans will become FairPoint services. Data networks consisting of ATM, Frame Relay, and Private Line will be transferred to FairPoint if the majority of locations on the network are within the three northern New England states. Internet access services and mixed access services (voice and data) will transition to FairPoint as well. Certain interstate services currently provided by Verizon or its affiliates (such as ATM/Frame Relay networks with multiple points outside of the northern New England states) may be retained by Verizon. Your current Verizon account team can provide you with an overview of the services you currently enjoy that may be remaining with Verizon after theTransition Period.

FairPoint is committed to meeting the service level expectations set by the market and regulatory agencies. Many of the talented and experienced technicians and service representatives that support Verizon services today will become FairPoint employees as part of the transaction, helping ensure that your service level expectations are met.

FairPoint is committed to maintaining the current rates for at least one year for residents and businesses alike. In the case of contracted services, FairPoint is obligated to honor those prices. Many of the services FairPoint is acquiring are regulated by state and federal tariffs and require regulatory approval prior to changing the price.

Will FairPoint discontinue any business services currently provided by Verizon?

FairPoint is legally obligated to the continuation of all Verizon services that are acquired as part of the transaction. As part of the Transition Services Agreement between Verizon and FairPoint, both parties have specific responsibilities and must demonstrate the ability to transition, manage and support all business services throughout the transition. Many of the services being transitioned to FairPoint are regulated by state or federal tariffs, and FairPoint will be subject to this regulatory oversight, just as Verizon is today.

FairPoint will continually develop, evolve and support a versatile set of competitive business services that advance the business objectives of organizations throughout northern New England.

Will FairPoint be able to support complex and advanced services?

After the transition of Verizon systems to FairPoint systems slated for early fall, FairPoint will directly support all of the services it acquires as a result of the transaction, including complex services.

For medium and large businesses, FairPoint’s Business Services Team is organized around field account teams, consisting of an account manager, a sales engineer, and a sales support specialist. These account teams are responsible for the ongoing support of assigned enterprise accounts throughout northern New England. The account team works closely with the customer operations group for business services, as well as the other departments that support your services.

For example, if your company requires additional PVC on your ATM circuit, the sales engineer on your account team will assist in the design and implementation of that change, and will work with FairPoint’s internal engineering and provisioning groups to make the change.

When there is a complex repair issue, will FairPoint have the necessary resources to diagnose and correct it in a timely manner?

During the Transition Period, Verizon will continue to handle internal escalations to facilitate the diagnosis and resolution of any service issues. Following the Transition Period, this responsibility will transfer to FairPoint’s repair group, and will be internally escalated as necessary to ensure prompt diagnosis and resolution. Escalations of this type may include high-level engineering support from the network, operations, product management, and information technology staff, depending on the service issue.