GWI asks state to investigate FairPoint
By Gillian Graham
Staff Writer
Biddeford-based Internet and phone provider GWI Inc. has asked the Maine Public Utilities Commission to investigate the business practices of FairPoint Communications. GWI uses FairPoint network elements to provide Internet service.
The company also has asked the commission to stop FairPoint from disconnecting its commercial customers until an investigation is complete. It its filing, GWI said the commission should investigate FairPoint because the company has been unable to document reasons for $3 million in charges it has assessed against GWI.
The filing is part of an ongoing dispute between the two companies that began when GWI discovered FairPoint overcharged it by $1 million for use of its lines for wholesale communications services, according to a GWI press release.
FairPoint spokesman Jeff Nevins said GWI owes the company about $2 million. Half of that is related to a disagreement over access to FairPoint’s dark fiber loops, a high-capacity pipeline used by business to transmit information across the Internet, he said. The other $1 million GWI owes is for use of FairPoint’s network, Nevins said.
“We have had several deadlines for GWI to work out a payment strategy and they have not responded,” Nevins said. “We’re open to discussing it. They seem reluctant to do that.”
GWI spokesman John Porter said the company disputes FairPoint’s assertion it is owed $2 million.
“GWI does not know or understand the basis for that number,” he said.
Porter said GWI has been willing to enter into mediation with FairPoint.
“GWI has been willing to do that in good faith. GWI is confused as to why they would threaten to cut lines when they’re working on this in good faith,” he said.
In its request to the commission, GWI also asserts that FairPoint has failed to credit payments GWI has made and has initiated collection action for charges that are subject to a dispute resolution process. A federal bankruptcy court last month ordered the two companies to enter mediation over the disputed charges.
Nevins said FairPoint is willing to meet GWI officials to work out a payment arrangement and contract for use of the dark fiber loops. He said the initial mediation did not result in an agreement. FairPoint will end GWI’s use of the dark fiber loops Feb. 12 unless the companies enter discussions and agree on a settlement, he said.
“We need to sit down and hammer out a contract,” Nevins said.
If FairPoint does disconnect 17 lines, it would affect GWI’s ability to serve its 14 largest commercial customers, Porter said. The companies are primarily large private industries in Southern Maine. GWI says residential and other commercial customers will not lose service.
“There is no immediate threat to the service GWI provides to the rest of their customers,” he said.
In a response filed last week with the commission, FairPoint said the U.S. Bankruptcy Court in New York, where it filed for Chapter 11 bankruptcy last fall, has jurisdiction over the claims.
“GWI’s complaint with the commission is nothing more than an attempt to circumvent the process that GWI is required to follow in bankruptcy court,” the response says. “The commission should not be complicit in GWI’s attempts to circumvent the bankruptcy court and should dismiss GWI’s complaint.
The Maine Public Advocate Office, which represents interests of ratepayers within the jurisdiction of the public utilities commission, last week told the commission it supports GWI’s petition. The public advocate filing says the matter is of “great importance to many telephone and broadband customers.”
The public advocate filing says FairPoint has “embarked upon an ill-considered and unduly harsh policy of billing enforcement and overly aggressive interpretations of applicable law governing its provision of wholesale elements … More specifically, the public advocate is concerned that FairPoint’s failure to resolve good faith billing and wholesale element provisioning issues will result in massive disconnections of service to [commercial] customers of GWI.”
Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.
Staff Writer
Biddeford-based Internet and phone provider GWI Inc. has asked the Maine Public Utilities Commission to investigate the business practices of FairPoint Communications. GWI uses FairPoint network elements to provide Internet service.
The company also has asked the commission to stop FairPoint from disconnecting its commercial customers until an investigation is complete. It its filing, GWI said the commission should investigate FairPoint because the company has been unable to document reasons for $3 million in charges it has assessed against GWI.
The filing is part of an ongoing dispute between the two companies that began when GWI discovered FairPoint overcharged it by $1 million for use of its lines for wholesale communications services, according to a GWI press release.
FairPoint spokesman Jeff Nevins said GWI owes the company about $2 million. Half of that is related to a disagreement over access to FairPoint’s dark fiber loops, a high-capacity pipeline used by business to transmit information across the Internet, he said. The other $1 million GWI owes is for use of FairPoint’s network, Nevins said.
“We have had several deadlines for GWI to work out a payment strategy and they have not responded,” Nevins said. “We’re open to discussing it. They seem reluctant to do that.”
GWI spokesman John Porter said the company disputes FairPoint’s assertion it is owed $2 million.
“GWI does not know or understand the basis for that number,” he said.
Porter said GWI has been willing to enter into mediation with FairPoint.
“GWI has been willing to do that in good faith. GWI is confused as to why they would threaten to cut lines when they’re working on this in good faith,” he said.
In its request to the commission, GWI also asserts that FairPoint has failed to credit payments GWI has made and has initiated collection action for charges that are subject to a dispute resolution process. A federal bankruptcy court last month ordered the two companies to enter mediation over the disputed charges.
Nevins said FairPoint is willing to meet GWI officials to work out a payment arrangement and contract for use of the dark fiber loops. He said the initial mediation did not result in an agreement. FairPoint will end GWI’s use of the dark fiber loops Feb. 12 unless the companies enter discussions and agree on a settlement, he said.
“We need to sit down and hammer out a contract,” Nevins said.
If FairPoint does disconnect 17 lines, it would affect GWI’s ability to serve its 14 largest commercial customers, Porter said. The companies are primarily large private industries in Southern Maine. GWI says residential and other commercial customers will not lose service.
“There is no immediate threat to the service GWI provides to the rest of their customers,” he said.
In a response filed last week with the commission, FairPoint said the U.S. Bankruptcy Court in New York, where it filed for Chapter 11 bankruptcy last fall, has jurisdiction over the claims.
“GWI’s complaint with the commission is nothing more than an attempt to circumvent the process that GWI is required to follow in bankruptcy court,” the response says. “The commission should not be complicit in GWI’s attempts to circumvent the bankruptcy court and should dismiss GWI’s complaint.
The Maine Public Advocate Office, which represents interests of ratepayers within the jurisdiction of the public utilities commission, last week told the commission it supports GWI’s petition. The public advocate filing says the matter is of “great importance to many telephone and broadband customers.”
The public advocate filing says FairPoint has “embarked upon an ill-considered and unduly harsh policy of billing enforcement and overly aggressive interpretations of applicable law governing its provision of wholesale elements … More specifically, the public advocate is concerned that FairPoint’s failure to resolve good faith billing and wholesale element provisioning issues will result in massive disconnections of service to [commercial] customers of GWI.”
Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.


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