Sunday, April 20, 2008

Fairpoint Communications April 17 Investor Call Update

Last week I wrote about the April 17 Fairpoint Communications Investor call that was help last Thursday. The call was a long one, lasting 107 minutes (!). I've listened to it, looked at the slides, etc - here's the major technology and integration highlights I got from the call.

With the Verizon Northern States (Maine, New Hampshire and Vermont) acquisition, the company currently:

- Is the 8th largest local telephone company in the U.S.
- Operates in 18 states
- Serves 1,616,171 Voice Access Lines
- Serves 290,577 Broadband Lines that represent approximately an 18% penetration

Broadband penetration rates are currently low compared to peers and the company admits this. FairPoint penetration is 18% while peer average is 25%.

Fairpoint believes the
increased size, economies of scale and extensive network are expected to improve cost structure and enhance product capabilities and sees opportunities for revenue in four areas:

- Increased broadband availability and IP based services
- Buildout of IP / MPLS networks will support new services
- Broadband addressability will be expanded from 68% of access lines to over 90% within five years

- New product bundles
- The IP / MPLS network upgrade will provide flexible business platforms

- Increased focus on local sales and marketing
- New local and experienced sales force of 50 employees being deployed
- Significant DSL build-out will increase availability to all customers

- Strong focus on business segment

I've listed on only some of the technology components and integration issues here - there is also a lot of good business & financial information for investors and Fairpoint employees.

You can download the full set of slides, listen to the audio presentation, and watch the webcast for detail information. All content can be accessed here.

No comments: