ERF Wireless Inc. (OTCBB: ERFW) shares jumped 31 cents, nearly 50 percent, to 92 cents yesterday, reeling from an early morning announcement regarding its Wireless Internet Service Products (WISP).Today the wireless and broadband provider announced that its subsidiary, ERF Enterprise Network Services, completed a three-year testing and certification process to deliver WISP across a financial institution’s BranchNet system as well as its U.S.-BankNet infrastructure.
In a statement, John Burns, chairman and CEO of ERF Network Services, said WiNet can generate millions in revenue over the duration of a few years.
“A typical WiNet system deployed across a financial institution’s encrypted BranchNet structure is projected to generate about $1 million per year in revenues to ERF Wireless after a two-year ramp-up period,” Burns said.
Additionally, the company has launched a sales initiative, targeting financial institutions to offer them the opportunity to enter into a WiNet Systems Agreement and to take part in a revenue-sharing program that provides WiNet applications to commercial and residential banking customers.
According to the press release, the company has set a goal of closing at least 20 BranchNet/U.S.-BankNet deals, as well as another 30 “standalone” U.S.-BankNet sales in Louisiana. The company estimates that if successful in meeting these goals, it could generate about $130 million in revenues over the next 10 years.