OTCBB Penny Stock News
Resale of Excess Bandwidth and Advanced Wireless Services to Add Millions in Recurring Revenue for ERF Wireless
Jul 29, 2008 9:05:00 AM
Copyright Business Wire 2008
LEAGUE CITY, Texas--(BUSINESS WIRE)--
ERF Wireless (OTCBB:ERFW), a leading provider of enterprise-class wireless and broadband products and services, announced today that its ERF Enterprise Network Services subsidiary has entered into ten-year, multi-million dollar WiNet System contracts with Louisiana-based Fidelity Homestead Bank and Texas-based Classic Bank to bring wireless broadband to certain rural communities in both Texas and Louisiana. These new contracts will utilize each bank's excess wireless bandwidth and wireless infrastructure to provide Wireless Internet Service Provider (WISP) products and services to the banks' commercial and retail customers. The WiNet System Agreements are in addition to the previously announced BranchNet and US-BankNet contracts with each bank. ERF Wireless will operate and support its WiNet product offerings through its Wireless Bundled Services subsidiary and estimates its WiNet operations for both banks will be initiated in the fall of 2008. After a ramp-up period, the contracts are expected to generate more than $7 million in recurring revenues to ERF Wireless after the revenue share to the banks over the next ten years. The banks will receive a percentage of the gross subscriber revenues as part of the agreement.
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."
Smith went on to note that the WiNet System Agreements allow the company's Wireless Bundled Services subsidiary to expand its current base of residential and commercial customers and develop a number of new, underserved markets. The revenue sharing agreements with the banks also allow ERF Wireless to quickly enter into servicing these new territories without having the expense of constructing or leasing new towers.
Richard E. Williams, President of Classic Bank, 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."
"The BankNet, BranchNet and WiNet contracts we've signed with Fidelity Homestead and Classic Bank underscore that our efforts are paying off in educating financial institutions on just how powerful and profitable our integrated trio of advanced wireless broadband products and services can be," said ERF Wireless CEO Dr. H. Dean Cubley. "When we combine our bank networks and the follow-on WiNet coverage with our existing WISP network coverage, ERF Wireless has a wireless network footprint that is one of the largest networks in the nation and covers a number of vertical markets, in addition to banks and financial institutions, such as petrochemical, healthcare and especially oil and gas production."