Frequently Asked Questions

Air Advantage Expansion

Factoring

Plastic Recovery Systems

Air Advantage Expansion  (back to top)

So what is all the excitement for about the Rural Utility Service?

·       Air Advantage is one of the most successful businesses in dealing with the RUS across the U.S.

o      1^st in Michigan to receive RUS Grant (2 awards totaling $450,000)

o      1^st in Michigan to receive RUS Loan (2 approved applications totaling $2.5 million)

o      Successful in securing Distance Learning Telemedicine Grant for a six client consortium ($446,000 award)

o      Only company in Michigan to have both approved and pending loans. 

o      Air Advantage understands the process and is currently assisting the RUS on improvements. 

·       For every $200,000 we raise, we will be eligible for $1,000,000 in RUS funding.

·       Our Mission is to provide affordable high-speed Internet service to un-served or under-served communities.  This is in complete alignment with the RUS objectives.

Can you tell me more about the History/Objectives of the RUS?

On May 11, 1935, President Franklin D. Roosevelt signed Executive Order 7037 establishing the Rural Electrification Administration (REA) to provide electricity to rural areas. REA became part of the Department of Agriculture in 1939.

Over time, Congress expanded the agency's role. In 1949, Congress directed REA to oversee a rural telephone program, and, in the 1970s, it authorized the Rural Telephone Bank and use of revolving loan funds to finance the agency's telecommunications programs. More recently, Congress has tasked the agency with delivery of Internet-based telecommunications programs including distance learning and broadband.

Since 1935, the mission has expanded. The Rural Electrification Administration added a telephone program in 1949. The Rural Telephone Bank was created in 1971. The distance learning and telemedicine initiatives date from 1990.  The rural broadband program was added in 2002.

It is the mission of Rural Development to increase economic opportunity and improve the quality of life for all rural Americans.

On May 11, 2005 U.S. Agriculture Secretary Mike Johanns announced that "The rural electrification effort of the 20th Century serves as a benchmark of excellence. In 70 years, the quality of life in rural America has dramatically improved due in large part to the massive effort by USDA to bring economic opportunity, affordable housing and electric, telephone, community water and wastewater infrastructure to rural communities across the nation," said Johanns. "President Bush has now challenged us to bring telecommunications technologies, like broadband, with the same dedication to rural communities by 2007." 

Johanns noted that since the inception of the Resettlement and Rural Electrification Administrations, both have taken on new responsibilities, changed names and evolved into one comprehensive rural development organization in 1994. Today, USDA Rural Development 's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested over $50 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, over 800,000 jobs have been created or saved through these investments.

The Rural Utilities Service (RUS), an agency delivering the U.S. Department of Agriculture's Rural Development Utilities Programs, provides funding for the Rural Broadband Access Loan and Loan Guarantee program. For FY 2005, no less than $2.157 billion in loans is available, $2.032 billion for direct cost-of-money loans, $46 million for direct 4-percent loans, and $79 million for loan guarantees.  During FY 2005, no less than $2.157 billion will be made available for loans and loan guarantees for the construction, improvement, and acquisition of facilities and equipment for broadband service in eligible rural communities. The Rural Broadband Access Loan and Loan Guarantee Program is authorized by the Rural Electrification Act (7 U.S.C. 601) (the Act), as added by the Farm Security and Rural Investment Act of 2002, Public Law 101-171.  Loans and loan guarantees under this authority will not be made for less than $100,000.

For more information on the Rural Utility Service, please visit the following site:  http://www.usda.gov/rus/telecom/index.htm.

I keep hearing about Security and Connectivity Concerns?

Connectivity and security with a wireless system are always a concern to the end user.  These concerns are mainly due to some of the mis-conceptions between ‘Wi-Fi’ technology and other ‘Wireless’ technology: 

• 802.11x wireless technology, commonly know as Wi-Fi, is open and un-secure.  Some traditional providers exploit this weakness in Wi-Fi as being true for all forms of wireless communications.  That is simply not the case.

• Wi-Fi equipment is brand neutral, so the end user must re-configure each time he/she changes location – often creating connectivity issues.

The basic concepts behind the wireless technology deployed throughout our network have been in existence since World War II.  This technology performs a variety of secure transactions in a variety of different forms, including HIPPA compliant transmissions.  Connections are also registered as part of the initial start-up process, limiting connectivity issues to those similar to traditional providers.

Can you tell me more about how you handle Security Concerns?

Air Advantage uses several measures to provide its customers with the maximum security available to the Internet user.  We use brand specific, proprietary equipment that utilizes the 5.8 GHz, 5.2 GHz, 2.4 GHz and 900 MHz radio spectrums.  The equipment used for each of these spectrums must use brand specific antennas, radios and connection equipment to establish a connection.  5.8 GHz and 5.2 GHZ equipment is used primarily for backhaul connections while 2.4 GHz and 900 MHz equipment is used primarily for last mile connections.

Our 900 MHz equipment makes up the majority of the equipment we use on our network for last mile connections.  Each tower is equipped with a Customer Control Unit (CCU) that registers each End User Modem (EUM) used to connect to that particular tower.  The EUM must be registered in the CCU before a connection can be established.  This registration is a manual process that identifies each EUM with a particular customer.  The MAC address of the EUM is entered into the CCU by Air Advantage personnel. 

Even if a rogue EUM were introduced to our network, connection to the network would not be established since that EUM would not be registered with the CCU.  EUM’s are not portable from tower to tower due to this registration process.  900 MHz equipment from other manufacturers will not connect to the last mile broadcast equipment installed on our towers.  This is different than 802.11x equipment that is brand neutral.

Air Advantage also uses MAC authentication of the particular peripheral device connected to the EUM.  This device may be an end user computer or router.  We use RADIUS authentication services to authenticate the MAC address of the peripheral device.  If a customer changes their router or computer, they must inform us of their new MAC address so that the authentication server can be updated.  This protects our network in the unlikely event that a registered EUM would be accessed by a rogue user.  MAC authentication is used to protect both 900 MHz and 2.4 GHz last mile equipment. 

While no system (wired or wireless) is completely secure from hacker activity, we feel that by using brand specific equipment, EUM registration and MAC authentication, we provide our customers with the most secure wireless network possible.

Air Advantage backbone infrastructure uses equipment that has proven to be reliable and secure.  When necessary, encryption software is available to encrypt data traveling across the Air Advantage backbone.  Various encryption software solutions can be applied effectively in both wireless and Wi-Fi environments.

Can you tell me more about how you handle Connectivity Concerns?

The two biggest problems facing our backbone equipment is power failure and interference within the spectrum.  Our backbone equipment is remotely manageable so that our technicians can perform any connectivity maintenance remotely.  This equipment also continually scans the entire available spectrum and automatically chooses the clearest channel to receive and transmit a signal.  Channel changes can happen several times throughout the day with no interruption in service.  This helps in both security and connectivity issues.  Security is strengthened because a rogue user generally cannot change spectrum channels as quickly as the backhaul unit.  Connectivity is strengthened because a clear channel is constantly being sought and updated by the equipment.

Power failures account for about 95% of our connectivity failures.  We are currently in the process of including small generators in our critical tower backbone units to ensure this risk of connectivity loss is minimized. 

Additionally, our towers send emails to our technical staff if a tower is “down” for more than 2 minutes.  This allows the on-call technician to immediately remotely access the equipment in that tower and resolve the problem if he is able.  In the case where power failure is the cause, portable generators are either automatically engaged or delivered to the site to restore power to that tower.

Recent customer survey results (below) gave Air Advantage high marks in both the ‘Quality of our internet service’ and the ‘Timeliness of our technical assistance’.  We believe these results continue to explain our growth in market share and are a direct result of our minimal connectivity issues. 

AIR ADVANTAGE REPORT CARD RESULTS! September 2005
Please grade us using the following scale:
	A = Excellent
	B = Above Average
	C = Average
	D = Below Average
	E = Poor
	A	B	C	D	E	Total
Friendly Staff	19	14	3	1		37
Knowledgeable Staff	18	15	3	1		37
Quality of our internet service	12	14	10	1		37
Cost of our service	12	8	13	4		37
Billing efficiency	16	14	5	1	1	37
Timeliness of technical assistance	10	20	4		1	35
Air Advantage web site	9	12	12			33
Please include envelopes!	6
	A	B	C	D	E	Total
Friendly Staff	51.4%	37.8%	8.1%	2.7%	0.0%	100.0%
Knowledgeable Staff	48.6%	40.5%	8.1%	2.7%	0.0%	100.0%
Quality of our internet service	32.4%	37.8%	27.0%	2.7%	0.0%	100.0%
Cost of our service	32.4%	21.6%	35.1%	10.8%	0.0%	100.0%
Billing efficiency	43.2%	37.8%	13.5%	2.7%	2.7%	100.0%
Timeliness of technical assistance	28.6%	57.1%	11.4%	0.0%	2.9%	100.0%
Air Advantage web site	27.3%	36.4%	36.4%	0.0%	0.0%	100.0%
Please include envelopes!	16.2%

Factoring  (back to top)

Why haven't I heard of factoring before?

• Factoring has occurred for thousands of years.  It happens mostly between businesses.  We are offering the opportunity for individuals to profit from energy deregulation.

What is an example of factoring?

• Most people factor every day and don't realize it.  For example, when an individual makes a purchase with a credit card, the credit card company only pays the merchant a portion of the purchase price.  The merchant receives his money immediately while the credit card company earns a profit when the individual pays the credit card company full purchase price.

How is my investment secured?

• The growing invoice stream provided by various companies, secures your investment.  As an extra layer of security, not all invoices are factored so a paying invoice will replace a non-paying invoice (FULL RECOURSE).

Can I get my money out prior to the end of the contract?

• Yes.  Factoring is the purchasing of business receivables by contract that can be sold and transferred to any individual or corporation provided you notify and have received written approval.

Does the stream of invoices ever run out?

• Yes.  If the growth rate of invoices is less than the flow of money from Factors, the availability to factor invoices will close, as is currently the case.

Plastic Recovery Systems  (back to top)