An Ann Arbor-based telecommunications company signed a licensing agreement with a national wireless retailing company to rebrand its existing local stores.

20/20 Wireless, the retail division of Ann Arbor-based Internet service provider 20/20 Communications, recently finalized a franchising deal with Wireless Zone to rename its three stores formerly known as Ann Arbor Wireless. Middletown, Conn.-based Wireless Zone has more than 300 locally owned franchises nationwide.

The move reflects a widening but intentional divide between 20/20 Communications’ Internet service provider operation and its retail division.

Debbie Peterson, co-owner of 20/20 Communications and manager of the 20/20 Wireless division, said the firm also expects to start two new retail stores locally within the next several months. The company, which has invested about $80,000 in store renovations,  has retail stores in Ann Arbor, Ypsilanti and Jackson.

“The rebranding and remodeling of the stores has been very positive for our staff and our customers. It feels like growth and opportunity," Peterson said. "What a lot of retailers are experiencing is downsizing and cost-cutting initiatives.”

The rebranding also gives the company the right to display the Verizon Wireless logo more prominently on its signage. The firm is selling Verizon services exclusively through Wireless Zone, which expects its revenue to increase 19.4 percent to $240 million this year.

For 20/20 Wireless, the shift comes as the 20/20 Communications-managed Wireless Washtenaw program has struggled to gain traction.

20/20 Communications invested more than $2 million in the project over the last several years and has failed to turn a profit on the program. But the firm is hopeful that its upcoming application for federal economic stimulus package funding could revive the project’s long-planned expansion.

The firm’s renewed emphasis on its retail efforts comes as the cell phone market has become increasingly saturated. Verizon sells services through about two dozen stores, mall kiosks and direct outlets in the Ann Arbor region.

Additional industry players like Wireless Toyz, for example, also pose challenges. John Jabero, owner of the Wireless Toyz store on Main Street directly across from Michigan Stadium, acknowledged that cell phone retailers have proliferated in recent years. He said his 12-year-old store tries to distinguish itself with good customer service.

“We make sure that we take care of our customers as best as we can,” he said. “You get more of a person-to-person feeling.”

Peterson also said her transition to Wireless Zone “allows us to do what’s right for the customer.”

“I really think this will give us a chance to grow,” she said.

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Photo: Debbie Peterson at the Carpenter Road store. By Robert Ramey.