Thousands could lose internet access as Kentucky cuts ties with fiber optic manager

LOUISVILLE, Ky. (WDRB) -- A dispute over Kentucky’s state-owned fiber optic network is threatening to leave thousands without internet access by the end of the month.

The system, known as KentuckyWired, was designed to bring high-speed internet to every corner of the commonwealth. Owned by the state, the physical infrastructure is meant to be a secure and permanent asset.

“If you go in and touch the fiber, you are touching a state-owned asset,” said John Gill.

Gill, an internet provider who relies on KentuckyWired to power his service, said many businesses, universities, county offices and individual customers are now caught in limbo.

“We are a last-mile provider,” he explained. “You enjoy the internet on the last foot—whether that's through a wireless router or plugging in your laptop or TV.”

Gill’s company isn’t the only one facing uncertainty. Courthouses and other government buildings across Kentucky also depend on the system.

The Kentucky Communications Network Authority (KCNA), which oversees the system, has announced it is terminating its contract with Accelecom, the private company hired to manage the network. KCNA alleges Accelecom violated the terms of its agreement.

In response, Accelecom sent a letter to its customers warning their internet service could be shut off at the end of the month.

While state officials and Accelecom point fingers, customers said they’re the ones paying the price.

“You can’t do this—it’s written into law,” said Gill. “We’re sorry you had problems with Accelecom, but to us, they’re just a salesman. Salesmen come and go. Get us another one and we’ll be happy to work with them.”

KentuckyWired has had a rocky road since its inception. The multimillion-dollar project was launched by former Gov. Steve Beshear, and completed during Gov. Matt Bevin’s administration.

Construction delays cost taxpayers nearly $100 million. Now, after just five years in operation, its future is in question once again.

"Regarding disconnections, the Franklin Circuit Court ordered Accelecom to provide a list of its customers to KCNA so this agency could give the customers at least 30 days' notice they would be disconnected. The notice allows customers to review their options to transition their internet services to another provider," Doug Hendrix, executive director for the Kentucky Communications Network Authority, said in a statement Wednesday afternoon.

Accelecom responded to a request for comment around 10 p.m. Wednesday.

"We intend to prove that KCNA has repeatedly breached its contract with Accelecom, culminating in its unilateral decision to terminate the parties’ agreement and disconnect the customers it was created to serve," Accelecom CEO Brad Kilbey said in Wednesday's statement. "Those customers include more than 240 health care clinics and hospitals, 634,000 K-12 students, 44 internet service providers that serve tens of thousands of residents—many in rural areas—and hundreds of businesses. Any suggestion that the court has resolved the parties’ disputes in KCNA’s favor—or that KCNA has conducted its relationship with Accelecom in good faith—is categorically false."

The state has yet to respond to a request for comment.

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