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Name: AARPMAINE
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Portland, Maine
United States
Portland, Maine
United States
LexiMoney in Your Pocket .. for a change!
Big changes are coming to the phone bills of most Mainers. At a time when it seems the price of everything is on the rise, most former Verizon customers will see their monthly phone bill decrease by $4-4.50, thanks to advocacy by AARP.
FairPoint Communications is taking over Verizon’s business operations in Maine. As it sought approval for the sale from the Maine Utilities Commission FairPoint also agreed to settle a long-standing rate case brought by AARP and the Office of Public Advocate (OPA). The agreement between FairPoint, AARP and the OPA amounts to an $18 million annual rate reduction, for the next five years.
The rate cut should take effect before the end of this year. The exact amount of the reduction will be based on the number of lines in service, but it is expected to range between $4.00 and $4.50 per month. Customers who purchase certain bundled packages of service will not see an automatic reduction.
As part of the agreement FairPoint will not be able to raise rates for basic monthly service five years. In addition to cutting rates, FairPoint agreed to expand broadband coverage and to adopt Verizon’s price of $18 per month for “DSL” broadband service.
For nearly 10 years AARP has been trying to get the Maine Public Utilities Commission to follow the law and review the rates Verizon charged for basic local phone service. After years of delays, including appeals to the state Supreme Court, our position prevailed and the Commission was forced to undertake a rate review, which was concluded in 2007. At the hearing AARP argued rates were too high and the judge hearing the case agreed. The result of the hearing was a finding that Verizon had been over-charging consumers by several million dollars annually. The rate reduction is the result of that case.
“AARP has been fighting for this rate reduction since the 1990’s,” said Jud Dolphin, AARP State Director in Maine. “Our analysis showed that Verizon’s rates for basic local phone service should have been reduced significantly. The FairPoint takeover created the opportunity to give Maine customers long overdue rate relief.”
AARP was not a party to the FairPoint takeover case and did not take a position on the takeover. For more information on the settlement involving the FairPoint takeover see the Office of Public Advocate website at: http://www.maine.gov/tools/whatsnew/index.php?topic=meopa_news&id=47100&v=Default
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Added: Jun 19, 2008
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