ERF Wireless has announced that its Enterprise Network Services subsidiary (ENS) has entered into its second 10-year, multimillion-dollar WiNet system agreement this month with a Louisiana bank. This new contract with Iberville Bank in Plaquemine, La., will use the bank's excess bandwidth and wireless infrastructure to provide wireless Internet service products (WISP) to the bank's commercial and retail customers in the Greater Baton Rouge area.
The WiNet System agreement is in addition to the Iberville Bank BranchNet contract signed and announced in 2005 and the Iberville Bank US-BankNet contract announced on July 12, 2007. ERF Wireless plans to operate and support its WiNet product offerings through its wireless bundled services (WBS) subsidiary and estimates its WiNet operations with Iberville Bank will be initiated on Sept. 1, 2007.
The contract is expected to generate more than $6 million in recurring revenues over the next 10 years after a two-year ramp-up period. The bank will receive 10% of the gross subscriber revenues as part of the agreement.
John A. Burns, chairman and CEO of ERF Enterprise Network Services, commented, "Our marketing and sales team continues to do a tremendous job in rolling out and gaining acceptance for our newly announced WiNet product in the banking sector. In addition to delivering secure, high-speed Internet to banking customers, we plan to offer a whole new range of advanced digital applications across the WiNet system during the first year. These digital applications include high-speed access to Internet banking, bill payment, interaction with video tellers in a secure browser session, merchant check capture and commercial cash management systems available from the bank, voice over IP to replace phone lines, alarm systems that transmit video surveillance at the customer's premises to law enforcement when an alarm is tripped, network storage and backup, network access to video cams in their local communities, spam-free e-mail, web hosting, and WiNet hotspots on network located throughout the state for use during emergencies."
Larry Melsheimer, president of Iberville Bank, stated, "We are looking forward to converting our investments in BranchNet and US-BankNet systems into an income producing asset. We have hundreds of customers who can use the WiNet service in the various communities we serve, and we are excited about the prospects. We are going to help ERF Wireless market this to our customer base and help bring our rural Louisiana communities into the 21st century."
Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "Our latest contract with Iberville Bank is a further indication that our strategy to develop four separate and distinct revenue streams from every financial institution that we have a relationship with is working. We start with a BranchNet agreement, add a US-BankNet agreement, add a WiNet system agreement and then complete the process through the long-term sale of additional advanced digital applications to the financial institution and its customers. We are now starting to work with our industry partners to make this model totally scalable so that we may quickly and effectively expand this business model into other states and, eventually, throughout the country."