IN AN INVESTIGATIVE REPORT LAST YEAR, THE BERKSHIRE EAGLE
POINTED OUT THAT IT HAS TAKEN LONGER TO GET BROADBAND INTERNET
ACCESS TO ALL OF WESTERN MASSACHUSETTS THAN IT TOOK TO
PUT A MAN ON THE MOON.
AND WHILE GETTING THE INTERNET TO ALL THE HOMES AND SMALL
BUSINESSES IN THE HILLTOWNS OF THIS REGION ISN'T COMPLETE YET,
IT IS A SMALLER LEAP THAN IT WAS A YEAR AGO.
SO WHAT IS THE STATUS OF THE SO-CALLED LAST MILE?
HERE'S WHAT REPORTER LARRY PARNASS SAID.
>> A LOT OF PROGRESS IN THE LAST YEAR AND MOSTLY BECAUSE TOWNS
HAVE DECIDED TO GO THEIR OWN WAY AND BUILD THEIR OWN PUBLICLY
SYSTEMS HAVE ALL FOUND A PARTNER THAT IS LIKE DELIVERED FROM --
FROM THE GODS.
IT'S WESTFIELD GAS AND ELECTRIC WHICH HAD REALLY BEEN A LEADER
FOR FIBER OPTIC CONNECTIVITY IN WESTFIELD.
IT WENT TO A CONCERT IN TOWNS AND IT'S REPRESENTING 20 TOWNS
AS THEIR PROCUREMENT COORDINATOR AND DESIGNER BRINGING IN A LOT
OF OUTSIDE HELP BUT THE BOTTOM LINE IS THAT MANY TOWNS IN THE
NEXT 12 MONTHS TO THE END OF 2019 ARE GOING TO ACTUALLY LIGHT
UP LOCALLY OWNED MUNICIPAL SYSTEMS THAT HAVE BEEN AIDED BY
THIS REALLY, I THINK, PRETTY EFFECTIVE PUSH FROM THE
MASSACHUSETTS BROADBAND INSTITUTE IN THE LAST YEAR.
>> WHICH WAS KIND OF THE STATE AGENCY WHICH HAD BEEN TASKED IN
LOOKING THIS ISSUE AND TAKING IT ON IN VARIOUS CAPACITIES BUT IN
THE EARLY 2000s WASN'T THE ARGUMENT THAT THE LOCAL WAY TO
GO WAS TOO EXPENSIVE, WOULDN'T BE EFFECTIVE?
WAS THAT THE WAY IT WAS LOOKED AT?
>> THIS GOES BACK TO 2008, WHENEVER GOVERNOR PATRICK CAME
TO TOWN TO THE OCEAN FOR A BIG REVEAL TO LET'S DEAL WITH THE
DIGITAL DIVIDE.
>> IT WAS GOING TO BE WRAPPED UP BY 2011.
>> A LITTLE BIT AFTER THAT BUT THEN THE RECESSION CAME AND THE
ADMINISTRATION CHANGED SO MASSACHUSETTS GOT A NEW GOVERNOR
AND ALONG THE WAY THERE WERE SOME PEAKS AND VALLEYS IN TERMS
OF MOVEMENT FORWARD AND I CAN KIND OF DATE IT FROM WHEN MY
YOUNGEST CHILD WAS COMING THROUGH HIGH SCHOOL BECAUSE WE
HAD TO GO OUT AND GET A SATELLITE DISH IN OUR REMOTE
RURAL TOWN IN ASHEVILLE AND I THOUGHT I GOT TO HAVE IT BECAUSE
SHE'S IN HIGH SCHOOL.
SHE'S GOT TO BE ABLE TO DO HER HOMEWORK SHE'S LONG OUT OF
COLLEGE AND WE STILL DON'T HAVE HIGH-SPEED.
>> WOW!
>> SO LOTS OF FITS AND STARTS.
I THINK THE KEY MOMENTS IN THAT WERE THE DECISION TO INVEST A
LOT OF TIME AND ATTENTION IN BUILDING THE SO-CALLED -- READY
FOR IT, MIDDLE MILE.
>> EXACTLY.
>> WHICH TURNS OUT TO BE A MISNOMER BECAUSE IT NEVER PROVED
TO BE THE MIDDLE THAT LED TO LAST MILE CONNECTIONS TO HOMES
HE AND BUSINESSES.
>> AND BASED ON YOUR REPORTING AND MY PREVIOUSLY POINTING AS I
UNDERSTAND THAT MIDDLE MILE IS IF YOU'RE THINKING ABOUT A
HIGHWAY AND THE LAST MILE IS, YOU KNOW, THE SIDE STREETS,
RIGHT, CONNECTING SUMMARILY BUSINESSES RUN OUT OF YOUR HOME
AND THEN OUT OF YOUR HOMES BUT MIDDLE MILE MIGHT CONNECT THE
FIRE DEPARTMENT, PUBLIC SCHOOLS.
>> THAT'S WHAT REALLY SOLD IT, CARE E
CARRIE, THE FACT WE'LL BRING HIGH-SPEED BROADBAND SERVICE TO
RURAL AREAS, AND THERE WERE 123, THAT THIS MIDDLE MILE SYSTEM,
MASS BROADBAND 123 CAME THROUGH --
>> HENCE, THE NUMBER. >> 90 MILLION DOLLARS STATE AND
FEDERAL MONEY IF IT -- IF THERE WEREN'T -- IF THERE HADN'T BEEN
STIMULUS MONEY AVAILABLE, THIS WOULD HAVE NEVER BEEN
CONSTRUCTED IT DID AT LEAST BRING HIGH-SPEED ACCESS TO QUITE
A FEW MUNICIPAL BUILDINGS INCLUDING PUBLIC SAFETY
BUILDINGS BUT AS TIME WENT ON AND YOU MENTIONED -- I HOPE
WE'LL TALK ABOUT THE LITIGATION WHICH HAS FINALLY COME THROUGH
KIND OF A CRITICAL MOMENT HERE WHICH HAS OFFERED A LOT OF
TAKE-AWAYS ON WHAT WENT WRONG.
>> REALLY KIND OF DISSECTING WE TALKED ABOUT THE ARBITRATOR'S
DECISION WHAT YOU'RE REFERENCING A MINUTE AGO.
>> BUT IT NEVER PROVED TO BE A MIDDLE BECAUSE WHAT'S BEEN
REVEALED NOW IS THAT THE BIG PARTIES -- THE NATIONAL PLAYERS
LIKE COMCAST AND CHARTER THAT WERE SUPPOSED TO TAKE THIS
MIDDLE MODEL AND THEN GO FROM THERE TO CUSTOMERS -- THAT WAS
NOT THE CRITICAL PIECE OF IT.
THE COSTLY PART IS GOING UP AND DOWN THESE LITTLE RURAL ROADS,
ALL OVER WESTERN MASSACHUSETTS.
>> SPACED APART WITHOUT MANY HOMES OR PEOPLE WHO WOULD PAY
THE BILL AT THE END OF THAT LAST MILE 1234R50IG9
>> THAT'S THE REASON OF WHY -- RIGHT?
>> THAT'S WHY THEY HAVE SO MANY ADDRESSES PER MILE THEY'LL REACH
OUT FOR -- YOU KNOW, PRIVATE BUSINESS HAS TO MAKE A PRIVATE
AND IT'S NOT PROFITABLE TO GO INTO THESE REALLY SPARSELY
SETTLED AREAS.
THAT WAS THE PROPER.
IT WASN'T THAT THEY COULDN'T CONNECT ON THE BACK-END TO THE
INTERNET.
THEY COULD HAVE MADE THAT HAPPEN AND THEY DO IN RURAL AREAS.
>> BUT BASED ON YOUR MOST RECENT REPORTING ON THIS, FOCUSED ON
THE ARBITRATOR'S DECISION LOOKING AT MASS BROADBAND,
DIDN'T THEY SORT OF LOOK AT IT AND SAY MASS BROADBAND
OVER-PROMISED?
IS THAT A CORRECT WAY TO SORT OF BOIL DOWN HUNDREDS OF PAGES OF
LEGAL DOCUMENTS.
>> ACTUALLY, IT WAS A MILLION PAGES.
>> YEAH.
>> I WANT TO SAY ARBITRARY ACTUALLY READ ALL THOSE PAGES.
I THINK THE ARBITRATOR HAD TO ABSORB IT.
PHIL O'NEAL, JR.
BOTH PARTIES AGREED WHO WOULD REACH A
CONCLUSION HERE.
THE OVER-PROMISE ON THE OVER-PROMISING -- THE CONTRACT
THAT MASS TECH SIDE WITH ITS EVENTUAL NETWORK OPERATOR FOR
THE MIDDLE MILE WHICH WAS A CANADIAN COMPANY FROM THE
CANADIAN PLAINS, AXIA NET MEDIA, IS THE NAME OF THE COMPANY, THAT
CONTRACT SAID THEY WOULD HAVE A CERTAIN NUMBER -- OR LED THEM TO
BELIEVE THEY WOULD HAVE A CERTAIN NUMBER OF CUSTOMERS FOR
THIS NEW NETWORK AND AS THE ARBITRATOR DETERMINED THAT THE
ACTUAL NUMBER OF CUSTOMERS WAS FAR FEWER, EVEN A MASS TECH CFO
CHIEF FINANCIAL OFFICER IN PART OF TURNING OVER THEIR NEW
NETWORK OPERATOR, MASS TECH KNEW ACCORDING TO THE ARBITRATOR'S
FINDINGS THAT THEY WERE NOT TURNING OVER A SUSTAINABLE
SYSTEM AND YET MASS TECH RESISTED AXIA'S EFFORTS TO FIX
IT AND THAT LED TO $2 MILLION A YEAR LOSSES AND THEN SUDDENLY SO
MUCH LITIGATION THAT THEY COULDN'T FIGHT THEIR WAY OUT OF
IT UNTIL THEY FINALLY GOT THIS ARBITRATOR'S ASSISTANCE.
>> AND THE DECISION REALLY IS 12 OR SO MILLION DOLLARS OUTRIGHT
AT THE OUTSET.
>> YES.
>> THAT THEY HAVE TO PAY OUT AND THEN POSSIBLY ANOTHER $4 MILLION
ON THE LINE AND IS THAT ALL TAXPAYER MONEY?
>> I BELIEVE THERE IS -- THERE WAS SOME BONT THAT MASS -- BONDS
THAT MASS TECH HAD TO TAKE OUT BUT I DON'T KNOW IF THOSE CAN BE
APPLIED TO THAT DECISION, BUT ALONG THE WAY, SOME OF THE LEGAL
SKIRMISHING WAS OVER, IS THIS SYSTEM GOING TO COLLAPSE AND A
LOT OF STORIES THAT I WROTE ABOUT IS, GEE IS THE MIDDLE MILE
GOING TO RUPTURE AND NOT BE PROVIDING ACCESS TO ITS
CUSTOMERS?
>> DO WE KNOW THEN WHAT THAT MEANS FOR THE ACTUAL MIDDLE MILE
COMPLETION OR IT'S MOVING FORWARD INSTEAD OF FALLING APART
WAS THE CONCERN?
>> THIS WAS HOLYOKE GAS AND ELECTRIC WAS THE COMPANY THAT
WORKED WITH MASS TECH, ONE OF MANY WHO RESPONDED TO A REQUEST
FOR PROPOSALS, SORT OF IN THE THICK OF THE BANKRUPTCY FILING
AND JUST A LOT OF UNCERTAINTY ABOUT WHO WOULD BE OPERATING
THIS THING.
THESE ARE THE TERMS THAT WOULD BE REACHED KNOWING WHAT THIS
NETWORK ACTUALLY CONSISTS OF.
IT IS BELIEVED TO BE FINANCIALLY SUSTAINABLE NOW AND THE
TRANSLATION THERE IS THE OPERATOR HAS TO PAY A LOT LESS
MONEY TO THE STATE FOR THEIR RIGHT TO OPERATE THE NETWORK AND
THAT'S GOING TO AVOID THE LOSSES THAT HAVE JUST PLAGUED AXIA AND
ITS PARTNERS.