Wireless Washtenaw is NOT in a Bind.

On Sunday, August 12, 2007 the Ann Arbor News published an editorial by Mary McDonough regarding the state of the Wireless Washtenaw Project.

The article has alarmed several of our potential and current investors; not to mention many rural county residents. I’d like to take this opportunity to address two specific issues causing the most concern.

We are not “pinning our hopes” on a USDA loan. We are seeking and receiving funding from several sources: Local banks, local investors and national equity investors. Yes, we are applying for a USDA loan. The terms are too attractive not to. The loan will be in addition to funding we are so close to receiving.

Another concern was the characterization of 20/20’s inability to accurately estimate the project’s cost. This was based on the fact the cost estimate dropped from $40M in 2006 to $20M in 2007. The fact is 20/20 has spent hundreds of thousands of dollars over the past 11 months consulting with top RF Engineers in the US and Canada improving the design and lowering the project’s overall cost.

To be fair, I can certainly understand Ms. McDonough’s interpretation. Dealing with investors requires mutual Non Disclosure Agreements (NDA) limiting what we can say about financing. When asked direct questions about funding, the pre-determined limitations often make our responses sound vague or evasive. Let me assure you that is not our intent.

I know the Ann Arbor News and many residents of Washtenaw County are concerned and are trying to find out the reasons for the seemingly lack of activity

Since starting the pilots we’ve had several great successes as well some unexpected setbacks. One major setback was the merger of our partner Siemens with Nokia. The merger formed a new company called Nokia Siemens Networks (NSN). Many of the people we worked with at Siemens were reassigned to other projects, lost their jobs, or became a part of another company called Siemens Enterprise Systems. NSN indicated a different direction regarding muni-wifi networks. It required us to review our contract with them or determine to go elsewhere. We are currently in talks with Siemens Enterprise Systems regarding a new partnership.

As CEO of 20/20 Communications, no one knows better than I the many potholes in the road to making Wireless Washtenaw a success. A success neither I nor anyone in my organization have any doubts whatsoever!

As Ms. McDonough stated, “it is a worthwhile project “. I’d like to note we appreciate how fair The Ann Arbor News has been towards Wireless Washtenaw and 20/20 Communications. I’d also like to note even though this last article was less than glowing, the responses of readers calling and emailing us are incredibly supportive. It’s the residents’ commitment to this initiative that fuels us to ensure its completion.

So even if we encounter a few more potholes, I know they are not insurmountable as we continue on this road to success.

Sincerely,

Mark E. McCleary
20/20 Communications
CEO