Manchester, NH - In response to the announcement of a negotiated agreement late last night opening the door for North Carolina's-based FairPoint Communications' $2.7 billion buyout of Verizon's land lines in the three northern New England states Democratic presidential candidate Dennis Kucinich said, "This deal should not be approved, this will only create Internet inequality, especially in the more rural areas on New England."
In a letter to the FCC, May 25, 2007 Kucinich expressed concern in the manner in which the proposed sale was to be carried out which allows Verizon to spin off the land-line business to merge with Fairpoint saying, "This choice is made in large part to allow Verizon to avoid paying taxes on the deal."
The Ohio congressman points out from his experience, as Cleveland Mayor, and as Chair of the House sub-committee on Domestic Affairs, this merger will allow FairPoint to immediately begin cutting costs in the form of jobs and service. A question that remains unanswered is "Does FairPoint have the capital to carry the debt the purchase of Verizon's land-lines will create."
"This basic economic issue will affect the future of The New England States" he said. "As president I would make sure the Justice Department investigates this, as a Congressman I will continue to stand up for the working families. Our future as a nation depends on our economic security as well as securing our borders"