Court: Axia must keep 'middle-mile' broadband network operating

A May court order requiring continued operation of the state's $90 million "middle-mile" broadband network remains in effect, despite an effort to quash it.  That development comes as the arcane legal dispute mushrooms, nine months after the network operator's surprise bankruptcy filing.

The First Circuit of the U.S. Court of Appeals on Nov. 17 denied a request to impose a stay on the order that it continue to oversee the network. That earlier order came May 18, in the form of a preliminary injunction granted by U.S. District Court Judge Timothy S. Hillman. Axia NetMedia Corp. had appealed Hillman's order. But the three-judge appeals court, which sits in Boston, said that after reviewing arguments, it believes the status quo is best preserved. "We conclude that a stay is not advisable at this time," the judges wrote. Their finding secures service for customers of the 1,200-mile network known as MassBroadband 123. The state-owned system connects hundreds of public institutions in Western and Central Massachusetts to the internet, including police and fire departments.

The network is now run by an entity called KCST USA Inc. But Axia, based in Canada, has provided financing and remains on the hook to safeguard the network's operation. Court papers have revealed that Axia is the sole beneficiary of the trust that owns KCST.