By Eric Eyre
CHARLESTON, W.Va. -- NTelos plans to spend $40 million to expand high-speed data and fiber optic networks in West Virginia over the next three years, if the state Public Service Commission approves the company's plan to purchase FiberNet.
The money would be used to upgrade facilities and equipment, NTelos said Tuesday.
"The $40 million provides the opportunity to stabilize the network and to grow the network," said Frank Berry, president of NTelos's wire line business.
In July, NTelos announced plans to purchase FiberNet -- which primarily serves businesses and public agencies in West Virginia -- for $170 million.
On Tuesday, NTelos executives asked commissioners to approve the sale by early November. The companies hope to close the deal by the end of the year.
"By promptly approving this transaction, you will allow us to put this period of uncertainty behind NTelos and FiberNet," Berry told commissioners during a hearing in Charleston Tuesday. "Combining our two companies under strong, unified leadership will allow NTelos to make the investments needed to deliver unmatched data and voice services over a stable and reliable network."
PSC Chairman Mike Albert questioned Berry about FiberNet's recent troubles, which include two statewide telephone outages this month.
Berry said NTelos engineers were helping FiberNet this week to prevent future outages. NTelos also has assisted FiberNet in acquiring new equipment, he said.
"We're providing resources to help address the issues," Berry said. "We're stepping in. We have engineers out there right now."
Earlier this week, Charleston-based FiberNet announced plans to replace its power plant on Leon Sullivan Way. The announcement came after FiberNet customers -- including some hospitals, fire departments and police agencies across West Virginia -- lost service for about four hours on Monday.
FiberNet also had a similar outage on Oct. 10. The PSC is investigating the matter.
Kanawha County Commission President Kent Carper and others have criticized FiberNet for failing to notify 911 centers and emergency officials about the outages. Berry promised that wouldn't happen under NTelos' watch.
"We absolutely have processes in place for notification when there are any service issues," Berry said. "I'm confident now that [FiberNet is] going in the right direction," he said. "In the end, their customers are going to be my customers. We have an interest in seeing that their customers are served."
FiberNet operates about 100,000 telephone access lines in West Virginia and surrounding states. Regulators in Ohio, Maryland, Kentucky, Virginia and Pennsylvania already have approved the sale. The Federal Communication Commission is reviewing the deal.
CHARLESTON, W.Va. -- NTelos plans to spend $40 million to expand high-speed data and fiber optic networks in West Virginia over the next three years, if the state Public Service Commission approves the company's plan to purchase FiberNet.
The money would be used to upgrade facilities and equipment, NTelos said Tuesday.
"The $40 million provides the opportunity to stabilize the network and to grow the network," said Frank Berry, president of NTelos's wire line business.
In July, NTelos announced plans to purchase FiberNet -- which primarily serves businesses and public agencies in West Virginia -- for $170 million.
On Tuesday, NTelos executives asked commissioners to approve the sale by early November. The companies hope to close the deal by the end of the year.
"By promptly approving this transaction, you will allow us to put this period of uncertainty behind NTelos and FiberNet," Berry told commissioners during a hearing in Charleston Tuesday. "Combining our two companies under strong, unified leadership will allow NTelos to make the investments needed to deliver unmatched data and voice services over a stable and reliable network."
PSC Chairman Mike Albert questioned Berry about FiberNet's recent troubles, which include two statewide telephone outages this month.
Berry said NTelos engineers were helping FiberNet this week to prevent future outages. NTelos also has assisted FiberNet in acquiring new equipment, he said.
"We're providing resources to help address the issues," Berry said. "We're stepping in. We have engineers out there right now."
Earlier this week, Charleston-based FiberNet announced plans to replace its power plant on Leon Sullivan Way. The announcement came after FiberNet customers -- including some hospitals, fire departments and police agencies across West Virginia -- lost service for about four hours on Monday.
FiberNet also had a similar outage on Oct. 10. The PSC is investigating the matter.
Kanawha County Commission President Kent Carper and others have criticized FiberNet for failing to notify 911 centers and emergency officials about the outages. Berry promised that wouldn't happen under NTelos' watch.
"We absolutely have processes in place for notification when there are any service issues," Berry said. "I'm confident now that [FiberNet is] going in the right direction," he said. "In the end, their customers are going to be my customers. We have an interest in seeing that their customers are served."
FiberNet operates about 100,000 telephone access lines in West Virginia and surrounding states. Regulators in Ohio, Maryland, Kentucky, Virginia and Pennsylvania already have approved the sale. The Federal Communication Commission is reviewing the deal.
Berry said FiberNet's parent company, One Communications of Burlington, Mass., is struggling financially. The sale requires Waynesboro, Va.-based NTelos to pay $170 million directly to One Communications' creditors, he said.
"The transaction will strengthen our companies' ability to enhance current service offerings, bring a more advanced suite of services to a broader customer base, and to provide West Virginians with a meaningful choice of telecommunications providers," Berry said.
The Public Service Commission called Tuesday's meeting to hear details about a proposed settlement between NTelos and Frontier Communications, which owns the overwhelming majority of West Virginia's telephone landlines.
Under a "joint stipulation," Frontier has agreed not to intervene in Ntelos' request to purchase FiberNet, while FiberNet dropped a billing dispute complaint filed against Frontier.
NTelos also promised to honor all of FiberNet's existing contracts with Frontier, and FiberNet said it would waive early termination fees for customers who have "bundled packages" for 90 days after the sale.
"NTelos and Frontier had differing interests and concerns in this proceeding, but we successfully worked together to reach an agreement," Berry said.
On Oct. 15, the Public Service Commission's staff recommended that the commission approve NTelos' plan to take over FiberNet's landline business in West Virginia. PSC staff concluded that the deal's benefits to customers outweigh the potential harm.
In a memo, staff members said the commission should require NTelos to respond to all customer complaints filed with the PSC within 10 days.
In 2009, NTelos only responded within 10 days to 42 percent of complaints filed against the company in West Virginia. However, NTelos has answered all complaints within 10 days so far this year.
Berry said company officials met with employees to ensure NTelos will continue to respond promptly to complaints after the FiberNet acquisition.
NTelos has about 440,000 wireless customers in West Virginia and surrounding states.
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Great news which will make our network second to none in West Virginia and the 5 surrounding states.
Regards,
Thomas
FiberNet Communications
304.720.1652 - office
304.533.3160 - cell
800.320.6144, ext. 1652 - toll free
304.720.2114 - fax
voicefiber@gmail.com - public email
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