Archive for April 3rd, 2009

Fairpoint management may need to go, auditors suggest

Fairpoint Communications’ problems in migrating former Verizon customers to its own back office systems are examined thoroughly in a new report issued this week by the Liberty Consulting Group. It’s not pretty.

For starters, while Fairpoint recently promised regulators a return to normal operations by June, Liberty says it will probably take longer than that.

Atop its immediate recommendations, Liberty cites a “lack of unified senior executive leadership” necessary to correct Fairpoint’s problems and suggests the company either bring in outside experts to help or consider “permanent executive level change.”

Notably, Liberty also suggests Fairpoint is not being entirely candid about the extent of the damage. For example, while Fairpoint says about half of its orders are being provisioned late (and that’s after Fairpoint elongated its provisioning schedule), Liberty writes there are “problems with these reported numbers and believes the actual fraction of late orders is much larger.”

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