Profile: FairPoint Communications Inc (FRP.OQ)

FRP.OQ on NASDAQ Stock Exchange Capital Market

9.03USD
1 Aug 2013
Price Change (% chg)

$0.27 (+3.08%)
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$8.76
Open
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Volume
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$9.97
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FairPoint Communications, Inc. (FairPoint Communications), incorporated in February 1991, is a provider of communications services in rural and small urban communities, offering a range of services, including high speed data (HSD), Internet access, voice, television and broadband product offerings. The Company operates in 18 states with 1.3 million access line equivalents, including voice access lines and high speed data lines, which include digital subscriber lines (DSL), wireless broadband, cable modem and fiber-to-the-premises) in service as of December 31, 2011. FairPoint Communications offer a portfolio of communications services for residential and business customers in each of the markets, in which the Company operates. In January 2013, it sold its Idaho-based operations to Blackfoot Telecommunications Group of Missoula. In February 2013, it announced the acquisitions of both Cutthroat Communications, as well as Fremont Telcom Co. and Fretel Communications, LLC.

Voice Services. It offer its IP/Multiple Protocol Label Switched (IP/MPLS) network that is fiber-optic based (the Next Generation Network) to support data services and extend fiber into more communities across its Northern New England operations. Local calling services include basic local lines, private lines and switched data services. The Company provides local calling services to residential and business customers for a fixed monthly charge and service charges for special calling features. In a rural local exchange carriers (LEC's) territory, the amount that the Company charges a customer for local service is determined by rate proceedings involving the appropriate state regulatory authorities. It offers switched and dedicated long-distance services within its service areas through resale agreements with national interexchange carriers. In addition, through its wholly owned subsidiary FairPoint Carrier Services, Inc., it offers wholesale long-distance services to communications providers that are not affiliated with it.

Network Access Charges

It offers network transport services to wholesale customers for their use in connecting end users to the interexchange networks of the wholesale customer. These network transport services include special access services, which are primarily DS-1 and DS-3 services, and digital services, which are primarily Ethernet-based services provisioned over fiber and copper facilities.Network access enables long distance companies to utilize its local network to originate or terminate intrastate and interstate communications. Network access charges relate to long distance, or toll calls, that involve more than one company in the provision of telephone service, as well as to the termination of interexchange private line services. The Company generates intrastate access revenue when an intrastate long distance call involving an interexchange carrier is originated by a customer in one of its exchanges to a customer in another exchange in the same state, or when such a call is terminated to a customer in one of its local exchanges. The Company also generates intrastate access revenue when an interexchange carrier orders special access to connect interexchange private line services, such as high-speed data services to a customer in one of its local exchanges.

The Company generates interstate access revenue when an interstate long distance call is originated by a customer in one of its exchanges to a customer in another state, or when such a call is terminated to a customer in one of its exchanges. It also generates interstate access revenue when an interexchange carrier orders special access to connect interexchange private line services, such as high-speed data services, to a customer in one of its local exchanges. The Company bills interstate access charges in the same manner as it bills intrastate access charges.

The Universal Service Fund supplements the amount of local service revenue received by the Company to ensure that basic local service rates for customers in high cost areas are consistent with rates charged in lower cost areas. The Universal Service Fund, which is funded by monthly fees charged to interexchange carriers and LECs, makes payments to the Company on a monthly basis based upon its cost support for LECs whose cost of providing the local loop connections to customers is greater than the national average. For its rural service areas, these payments fluctuate based upon its average cost per loop compared to the national average cost per loop.

Data and Internet Services

The Company offers an array of capacity data services including: private line special access, fast packet, optical, Ethernet and IP services. It works with businesses and carriers to deliver network capacity to meet their specific needs, including migrating networks from time division multiplexing to Ethernet-based capacity circuits. It offers broadband Internet access via DSL technology, fiber-to-the-home FAST technology, dedicated T-1 connections, Internet dial-up, high-speed cable modem and wireless broadband. In addition, the Company offers improved Internet services, which include obtaining Internet protocol (IP) addresses, basic Website design and hosting, domain name services, content feeds and Web-based, e-mail services. Its services include access to 24-hour, 7-day a week customer support.

Other Services

The Company’s LECs charge interexchange carriers a billing and collection fee for each call record generated by the interexchange carrier's customer. Through its local telephone companies, the Company publishes telephone directories in the majority of its locations. These directories provide white page listings, yellow page listings and community information listings. It contracts with industry providers to assist in the sale of advertising and the compilation of information, as well as the production, publication and distribution of these directories. In certain of its markets, the Company offers video services to its customers by reselling DirectTV content and providing cable and IP television video-over-DSL.

Company Address

FairPoint Communications Inc

Suite 500, 521 E. Morehead Stree
CHARLOTTE   NC   28202
P: +1704.3448150
F: +1704.3448121

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