FairPoint Communications 2013 Annual Report Download - page 21

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Several of these requirements were eliminated statutorily during 2012 upon the enactment of the Maine Deregulation Legislation
or expired in August 2013 concurrent with the expiration of our AFOR in Maine. See "—Regulatory Environment—Legislation
for Maine and New Hampshire" herein for more information on the Maine Deregulation Legislation.
In addition, as noted above, in exchange for the termination of the show cause proceeding, the MPUC’s stipulation order
requires us in Maine to achieve 85% broadband addressability by August 14, 2013 and 87% by April 14, 2014. Northern New
England Telephone Operations LLC advised the MPUC on August 14, 2013 of the achievement of 85% broadband addressability
by August 14, 2013. We believe we are currently on track to achieve 87% broadband addressability by the April 14, 2014 deadline.
If the April 2014 commitment is not met, we must achieve 90% broadband addressability in Maine by May 14, 2015. In calculating
these percentages, there is no speed requirement for lines served by the legacy ATM network. Additionally, we must (1) contribute
$100,000 to ConnectME upon completion of the broadband commitment and (2) spend an additional $11 million during the period
from January 1, 2014 to December 31, 2016 on broadband facilities and services that benefit small businesses and residences in
Maine. The money may be spent in our sole discretion although the expenditure must include 30 central office overlays. Central
office overlays are defined as the addition of equipment to an existing central office that will enable customers served by that
central office with loop lengths of up to 22,000 feet from that central office and who purchase our internet service to have the
ability to access our Ethernet-based internet service.
Vermont Regulatory Settlement. On December 23, 2010, the VPSB provided its approvals in Vermont, including the
Regulatory Settlement for Vermont (the "Vermont Regulatory Settlement"). Among other requirements, the Vermont Regulatory
Settlement imposed obligations on us related to, among other things, broadband expansion, capital expenditure commitments and
various management commitments. Many of these requirements have been satisfied or are no longer applicable.
Local Government Authorizations
We may be required to obtain from municipal authorities permits for street opening and construction or operating franchises
to install and expand facilities in certain communities. If we more fully enter into video markets, municipal franchises may be
required for us to operate as a cable television provider. Some of these franchises may require the payment of franchise fees. We
have historically obtained municipal franchises as required. In some areas, we will not need to obtain permits or franchises because
the subcontractors or electric utilities with which we will have contracts already possess the requisite authorizations to construct
or expand our networks. In association with the American Recovery and Reinvestment Act of 2009 and other federal government
programs, there may be an increase in our requirements associated with road move requests pursuant to new funding for roads. It
is not certain whether funding will be available to us for this potential obligation.
Environmental Regulations
Like all other local telephone companies, our 32 LECs are subject to federal, state and local laws and regulations governing
the use, storage, disposal of and exposure to hazardous materials, the release of pollutants into the environment and the remediation
of contamination. As an owner of real property, we could be subject to environmental laws that impose liability for the entire cost
of cleanup at contaminated sites, regardless of fault or the lawfulness of the activity that resulted in contamination. We believe,
however, that our operations are in substantial compliance with applicable environmental laws and regulations.
Other Information
We make available free of charge on our website, www.fairpoint.com, our reports on Forms 10-K, 10-Q and 8-K and all
amendments to such reports as soon as reasonably practical after we file such material with, or furnish such material to, the SEC.
Our filings with the SEC are available to the public over the Internet at the SEC's website at www.sec.gov, or at the SEC's Public
Reference Room located at 100 F Street, N.E., Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further
information on the operation of the Public Reference Room.
ITEM 1A. RISK FACTORS
Any of the following risks could materially adversely affect our business, consolidated financial condition, results of
operations, liquidity and/or the market price of our outstanding securities. The risks described below are not the only risks facing
us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially
and adversely affect our business operations.