We've well-documented how Fairpoint Communications has all-but imploded from the acquisition of Verizon's Maine, New Hampshire and Vermont DSL networks. The carrier has skirted close to bankruptcy, faces state investigations for incompetence, and is now looking at a possible delisting by the NYSE. In recent months, users tell us the carrier has barely been able to answer the phone, much less deal with massive work order backlogs.

The company has been busy trying to avoid paying competitors compensation for disrupted service. So it's interesting the company still has the cash on hand to lobby (scare) Maine away from other organizations in the running for Federal broadband stimulus funds. According to the Bangor Daily News, Fairpoint lobbyists are upset because the University of Maine is also in the running to get funding, something that's desperately needed after Verizon left a significant portion of the state with rusted DSL infrastructure.

After neglecting the State for years, Verizon accountants used a Reverse Morris Trust to offload the unwanted network to Fairpoint, netting hundreds of millions in tax writeoffs for Verizon. Fairpoint in turn acquired a mountain of Verizon debt they've been struggling with ever since. Because of the debt, state broadband expansion plans may not be in the cards for Fairpoint without Federal funds. In order to get those funds, Fairpoint is busy trying to scare the State away from other possible suitors:Even if the company was competing directly with UMS, at least Maine residents could be certain the University will even exist a year from now. But as it stands, Fairpoint isn't competing with the University of Maine. They're competing with a public private partnership of which the University is only a member. Applications for Federal funds are open to public entities and private companies. Given recent history, giving taxpayer dollars to somebody other than the regional dysfunctional incumbent might not be the worst idea in the world.