Classic Bank has agreed to use a data network operated by ERF Wireless Inc. to connect its branches.
The League City, Tex., networking services provider is building a wireless system in the South. Several financial companies are using the system in Louisiana, but the seven-year deal it announced Tuesday with the Cameron, Tex., community bank is the first in that state.
ERF said it hopes to have at least 120 Texas financial companies using its US-BankNet system within seven years. If it meets this goal, ERF said, the contracts could bring in $120 million in up-front revenue to install the technology and another $125 million in recurring servicing revenue over 10 years.
The networking company is building multiple networks in the Southeast for individual banks and plans to connect them to create a national data network. It is focusing initially on the Gulf Coast states that face risks from hurricanes and other wide-scale natural disasters.
The Classic Bank contract has several renewal provisions, which ERF said could extend the deal for up to 25 years. It did not disclose the deal's value.
US-BankNet uses encrypted microwaves to carry data files. It provides wireless connectivity, fiber gateways, video-on-demand servers for storage and retrieval of training classes, access to network storage systems, high-definition video surveillance, and other services.
