Documents provided by MassTech, the quasi-public state agency that oversees the Massachusetts Broadband Institute, show about 30 employees from 12 companies showed up to its Westboro headquarters for an informational session Wednesday.
The private company that currently runs the network filed for bankruptcy in March, and its parent company is suing the state in U.S. District Court, arguing it has no long-term obligation to keep the network running.
Accordingly, the state has been working on contingency plans and issued a request for proposals March 31, seeking a new vendor.
Twelve companies attended or teleconferenced into the session – which is mandatory for those who plan to bid – including industry giant CenturyLink, Japan-based Fujitsu, Cyberonic of Worcester, Holyoke Gas & Electric and Westfield Gas & Electric.
The showing may belie a statement in court made March 31 by a lawyer representing the state, who said there "may not be any other operators" who can step in.
"The old expression applies: There's no sense in asking if the air is any good if there's nothing else to breathe," Boston attorney Robert J. Kaler told U.S. District Judge Timothy S. Hillman during a discussion about possible long-term replacements.
Bids are due by May 1. In the meantime, the state is waging a war in court with Axia NetMedia Corp. of Canada, the parent company of its current network operator, KCST USA Inc.
KCST, which until recently was called Axia US, filed for bankruptcy March 22, and a lawyer for Axia on March 31 claimed the company has lost $17 million on the venture.
Axia alleges the state, which built the network for underserved municipalities and then turned it over to Axia for operation, failed to build it properly or deliver an agreed-upon customer base.
Its federal lawsuit asks a judge to determine it has no long-term liability to keep the network going. The state has asked a judge to grant an order barring it from walking away in the short term. Arguments on the request have spanned three hearings and included multiple witnesses, court records show.
The next hearing is scheduled for April 25. BroadBand123, the fiber-optic network, spans about 1,200 miles and serves primarily government customers in 124 communities, including police in Fitchburg and Leominster.
Axia entered into an agreement with the state in 2010 to manage the network, which was financed with $90 million in federal and state money.
©2017 Telegram & Gazette, Worcester, Mass. Distributed by Tribune Content Agency, LLC.
