North American DataCom, Inc. (OTC BB: NADA) announced that it has completed revisions to its original Business Plan. This Plan, formulated in partnership with Cap Gemini Ernst & Young, called for the construction of a 3,000-mile fiber optic network throughout the Southeast United States. Under the revised Plan, the company will divide its proposed fiber optic network construction into six discreet segments. The Company will look to fund each segment separately, and expects to complete the first segment (roughly 550 route miles, extending from Atlanta to Memphis) by June 2001.
In September 2000, the Company retained Cap Gemini Ernst & Young to revise the Company's existing Business Plan and Business Model. These were completed in December. The 5-year Plan calls for a $725 million capital investment for seven EDS Centers and the 3,000-route-mile Fiber optic network. Revenues at the end of 5 years are projected to be over $500 million.
The Company has divided the business plan and model into six independent network segments. Segment 1 serves 15 of the 62 smaller population centers and 3 of the major 7 population centers along the planned network route. North American DataCom will obtain the first alternative fiber routes and footprint for 80 percent of the total population, where Bell South is the incumbent, and where competition has a very low presence. The Company sees a large opportunity for its broad bandwidth and wavelength services in this Segment. The Company plans to use its network to provide cost-effective communications services to telecommunications companies (i.e., LECs, CLECs, DLECs, IXCs, and Cable MSOs), ISPs and large organizations, including government agencies and departments.
In addition, North American DataCom plans to initially operate 2 of its 5 satellite data storage centers that are directly connected to its fiber optic network and to open its Major Data Center. Initially, this Major Center will comprise 60,000 of the planned 125,000 square feet available in the Company's facility in Iuka, Mississippi. North American DataCom's initial market strategy is to provide high-quality broadband communications and data storage services in the second Tier Segment 1 markets within northern Mississippi, Alabama and Georgia and southern Tennessee.
Under the revised Plan, North American DataCom expects to begin generating revenues from Segment 1 in July 2001, and expects to have a positive cash flow in June 2002, showing profits in August 2002.