ERF Enterprise Network Services, a subsidiary of ERF Wireless – a leading provider of wireless and broadband product and service solutions to enterprise, commercial and residential clients – has entered into a ten-year, multi-million dollar WiNet™ System contract with Louisiana-based Fidelity Homestead Bank and Texas-based Classic Bank to bring wireless broadband to certain rural communities in both Texas and Louisiana.
The new contracts are in addition to the previously announced seven-year BranchNet and US-BankNet contracts signed at the beginning of this year, and will utilize each bank’s excess wireless bandwidth and wireless infrastructure to provide wireless Internet products and services to the banks’ commercial and retail customers.
According to the terms of the agreement, the WiNet operations for both banks will be initiated in the fall of 2008 and the company will operate and support the product offerings through its wireless bundled services subsidiary. The agreement also states that, in regards to revenues, the banks will receive a percentage of the gross subscriber revenues as part of the agreement and – over the next ten years – the contracts are expected to generate more than $7 million in recurring revenues to ERF Wireless after the revenue share to the banks.
R. Greg Smith, CEO of ERF Enterprise Network Services, commented, “Because ERF Wireless has a relationship with their financial institution, the bank’s customers have a compelling reason to purchase Internet services from us rather than from a local cable or DSL provider. We also have the advantage of offering them unique products and services they simply can’t obtain anywhere else.”
Commenting on behalf of Classic Bank, Richard E. Williams, President, stated, “We have many customers who could use the WiNet services that include high-speed access to Internet banking, merchant check capture, spam-free email and web hosting. And we like the fact that giving our customers access to this advanced technology is another way our bank can bring more valued-added services to our community.”
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