FairPoint Communications 2004 Annual Report Download - page 15

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As of December 31, 2004, we employed a total of 847 employees. 125 employees of our rural local exchange carriers are represented by
four unions. We believe the state of our relationship with our union and non-union employees is good. Within our company, 34 employees
are employed at our corporate office, 804 employees are employed at our rural local exchange carriers and 9 employees are employed by
Carrier Services.
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We believe we have the trademarks, trade names and licenses that are necessary for the operation of our business as we currently
conduct it. We do not consider our trademarks, trade names or licenses to be material to the operation of our business.
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On September 30, 2003, MJD Services Corp., or MJD Services, a wholly-owned subsidiary of the Company, completed the sale of all
of the capital stock owned by MJD Services of Union Telephone Company of Hartford, Armour Independent Telephone Co., WMW Cable TV
Co. and Kadoka Telephone Co. to Golden West Telephone Properties, Inc., or Golden West, which we refer to as the South Dakota
disposition. The sale was completed in accordance with the terms of a purchase agreement between MJD Services and Golden West, dated
as of May 9, 2003, which we refer to as the South Dakota purchase agreement. MJD Services received approximately $24.2 million in
proceeds from the South Dakota disposition. The companies sold to Golden West provided communications services to approximately 4,150
voice access lines located in South Dakota as of the date of such disposition. The operations of these companies were presented as
discontinued operations beginning in the second quarter of 2003. Therefore, the balances associated with these activities were reclassified as
"held for sale." All prior period financial statements have been restated accordingly. We recorded a gain on disposal of the South Dakota
companies of $7.7 million during the third quarter of 2003.
In early 1998, we launched our competitive local exchange carrier enterprise through Carrier Services. In November 2001, we decided to
discontinue such competitive local exchange carrier operations. This decision was a proactive response to the deterioration in the capital
markets, the general slow-down of the economy and the slower-than-expected growth in Carrier Services' competitive local exchange carrier
operations. Carrier Services completed the termination or sale of its competitive local exchange carrier operations in the second quarter of
2002. Carrier Services now provides wholesale long distance service and support to our rural local exchange carriers and to communications
providers not affiliated with us. These services allow such companies to operate their own long distance communication services and sell
such services to their respective customers.
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The following summary does not describe all present and proposed federal, state and local legislation and regulations affecting the
communications industry. Some legislation and regulations are currently the subject of judicial proceedings, legislative hearings and
administrative proposals which could change the manner in which this industry operates. Neither the outcome of any of these
developments, nor their potential impact on us, can be predicted at this time. Regulation can change rapidly in the communications industry,
and such changes may have an adverse effect on us in the future. See "Item 7. Management's Discussion and analysis of Financial
Condition and Results of Operations—Risk Factors—Risks Related to our Regulatory Environment."
Our regulated communications services are subject to extensive federal, state and local regulation. We hold various regulatory
authorizations for our service offerings. At the federal level, the Federal Communications Commission generally exercises jurisdiction over
all facilities and services of
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