ERF Wireless Inc. announced that First Federal Bank of Louisiana has signed a 10-year contract to offer Internet services to First Federal's customers in southwest and central Louisiana.
First Federal, a $546 million-asset thrift in Lake Charles, is the first to sign up for ERF's Wireless Internet Service Products offering, ERF said Thursday. ERF estimated that the First Federal agreement will generate more than $9 million of recurring revenue over the next 10 years after a two-year ramp-up. The thrift will receive 10% of the gross subscriber revenues under the agreement.
ERF, of League City, Tex., is developing a network that uses encrypted microwave signals to transmit data among a bank's branches and among participating banks. In announcing Tuesday that it would offer Internet services to communities in conjunction with its bank customers, ERF estimated such operations would generate revenue of $130 million over 10 years in Louisiana alone.
