Status Update on MassBroadband 123 Operations

(Updated May 24, 2017)

As you may be aware, the operator of the MassBroadband 123 network, KCST, Inc., formerly Axia NGNetworks, USA, Inc. (“Axia”), commenced a chapter 11 bankruptcy case on March 22, 2017 with the U.S. Bankruptcy Court, District of Massachusetts, Case No. 17-40501. 

Axia continues to operate the MassBroadband 123 network under contract with the Massachusetts Technology Park Collaboration, d/b/a Massachusetts Technology Collaborative (MTC or MassTech). Axia has obtained a loan from its parent company, Axia Net Media Corporation, to fund operating costs for an initial period while Axia determines whether it will continue to operate the network in the long-term.

MassTech will continue to work to find an equitable long term solution with Axia, including the potential for arbitration, per the terms of the existing contract. In parallel, MassTech will continue to explore all available measures to ensure that there are no interruptions in service on the MassBroadband 123 network, which includes the open procurement to identify qualified network operators, as well as the establishment of contingency plans for a smooth transition to an alternative operator.

UPDATE (5/24/2017):

On May 18, 2017, the U.S. District Court for the District of Massachusetts issued a Preliminary Injunction requiring Axia NetMedia Corporation to ensure the continued operation of the MassBroadband 123 middle mile network under a Guaranty Agreement that it signed with MassTech in 2011.

The MBI and MassTech are pleased with this development, as it once again confirms the obligation of the parent organization, Axia NetMedia, to ensure continued operation and funding of the network while its Massachusetts affiliate KCST/Axia, which was awarded a contract to manage and operate that Network in 2011, is in bankruptcy.

In the meantime, MassTech continues its work to identify an appropriate long-term solution to this situation.

As we have consistently stated, MassTech and the Commonwealth are still committed to ensuring continued operation of the network and protecting the vital services being delivered over MassBroadband 123.

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If you have any questions about your relationship with Axia or service on MassBroadband 123, please contact Brian Noyes at (508) 870-0312 X:293 or noyes(at)masstech.org

We will continue to update this posting as we have additional information.