A document released by the state showed excessive equipment failures after testing, including radios with stuck volume controls, "black screens" that render the devices unusable and microphones that randomly turn on, unintentionally transmitting audio.

According to the state, testing done in November showed that M/A-COM failed to fix 15 of 19 deficiencies described in an earlier complaint.

M/A-COM, however, is disputing the charges. "We believe that M/A-COM has fulfilled its contractual obligations and delivered a state-of-the-art system that would benefit the residents of New York. We recognize that the State's current priorities may no longer support the construction of a statewide network and we have made several attempts to address this amicably with the State. Tyco Electronics and M/A-COM will take all necessary steps to protect the company's rights under the contract," it said in a statement.

The state awarded the contract to M/A-COM -- over its only competitor, Motorola -- in early 2004. By the end of 2008, New York State had spent US$54 million on the project.

If it can overcome M/A-COM's challenges, the state expects to get that money back. Terms of the original contract stipulated that M/A-COM put $50 million in an escrow account that the state could draw from in the event that the company defaulted on the contract, said Angela Liotta, a spokeswoman with the state's chief information officer and office for technology.