Thread regarding Windstream Corp. layoffs

Any other ILECs ever pass through bankruptcy?

I’m only aware of two since the Great Depression:

Hawaiian Telecom - bought by private equity from Verizon in 2004. Too much debt, bankrupt in 2008. Reduced debt through bankruptcy and got new management. Sold to Cincinnati Bell in 2017

Fairpoint - bought Verizon’s northern New England operations in 2007. Too much debt. Bankrupt by 2009. Bought by Consolidated Communications in 2017.

Have there been any others? What worries me as a customer is that these other two seem to have only been in feeble shape for several years before bankruptcy. From comments here, it sounds like Windstream’s been a weak patient for years.

What happens to a really sick ILEC? People depend on it around here. Do they just shut down and an area lose phone service?

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| 1473 views | | 4 replies (last June 11, 2019) | Reply
Post ID: @OP+ZtXx4Xt

4 replies (most recent on top)

The CLEC model is dead. It is quite confusing as to why Windstream continued buying up failing CLECs. US LEC, Paetec, Broadview, EarthLink, MassComm, Cavalier.....outdated networks with huge amounts of debt and they just kept on buying them. What did they expect to happen, there was zero chance that company survived. I am shocked they lasted this long with that management team.

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Post ID: @2vng+ZtXx4Xt

Agreed. We really need to go back to being a regional phone company/isp.

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Post ID: @1lvu+ZtXx4Xt

"What happens to a really sick ILEC?"

They get rid of the illness called CLEC and the upper management that think they are one and the same. ILEC and CLEC are two different animals and can't be treated the same way.

Example.....company issues a policy change about how to handle outages...across the company, ILEC and CLEC. Wanted the policy to be the same for both. Only problem, within the first 3 paragraphs were over 8 FCC violations for the ILEC if caught doing it the new way. Company's position..... if we get caught, the fines aren't that bad, we can deal with it.

Or putting all ILEC network traffic on CLEC network (which a lot was previous ILEC equip, they just decided to move it on paper to the CLEC side). Then they can try and skirt other tariffs and regulations.

Every ILEC that has bought into the CLEC mind set has never made it. Alltel tried several times to get into CLEC and got rid of it everytime. Then when we became Windstream, some one had the bright idea of buying a failing CLEC, and then show the ILEC management to the door and keep most of the failed CLEC upper brass. Then if that wasn't enough, lets buy another failing CLEC and keep those upper brass as well and then try to run everything as though it was CLEC.

So get the CLEC cancer out of the ILEC's system, and the ILEC wouldn't be sick anymore.

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Post ID: @1aen+ZtXx4Xt

"What happens to a really sick ILEC? People depend on it around here. Do they just shut down and an area lose phone service?"

Eventually, another company that has deeper pockets will acquire them on the cheap to keep things running.

I don't think a phone company can just shut off service, too many laws to prevent this from happening, even if the company is financially distressed like Windstream - whose leadership appears to care more about their own 'motivation bonuses' these days.

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Post ID: @1xgl+ZtXx4Xt

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