Status Update on MassBroadband 123 Operations

(Updated: April 26, 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 (4/26): On April 24, 2017, the U.S. District Court for the District of Massachusetts issued a temporary restraining order requiring Axia NetMedia Corporation to perform its obligations under the Guaranty it provided to MassTech at the time its Massachusetts affiliate entered into a contract to manage and operate the MassBroadband 123 network.

We are pleased that Axia NetMedia's obligation to perform under its Guaranty has been confirmed by the Court, and that the continued operation of the network is assured going forward, as MassTech and MBI consider the alternatives for maintaining the long-term health of the network.

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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.