'Middle Mile' Broadband Operator Files For Bankruptcy

Mar 23, 2017

The operator of a state-owned broadband network in Western Massachusetts is filing for Chapter 11 bankruptcy. And it is just the latest in a legal battle between the company and the state. The bankruptcy filing by KCTS-USA goes along with a 2014 suit it brought against the state. The company said construction delays and a dispute over how many subscribers it would have caused it financial harm. That case has yet to be resolved. KCTS operates the so-called "middle mile" network, which provides broadband to libraries, schools and town governments. The company said a loan will keep it up and running for the next three months. Paul McMorrow with the state office of housing and economic development said the bankruptcy proceedings could help bring a resolution.  "At the same time, we intend to go down a parallel track, gage market interest for alternative service providers to operate the Middle Mile network, should that become necessary," McMorrow said.  KCTS said it has lost $9 million in three years of operating the network.