Israel’s Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, was awarded a $285 million regional telecommunications infrastructure project by Peru’s Fitel (Fondo de Inversion en Telecomunicaciones / Telecommunications Investment Fund). This is the largest contract ever won by Gilat since its inception.
Gilat, based in Petah Tikva, Israel, with a Nasdaq market capitalization of $212.04 million, is under the control of the FIMI Private Equity Funds.
Fitel’s regional initiative represents the complementary phase of the Peruvian National Fiber Backbone project, aimed to connect rural villages to broadband services. Within the framework of this phase, Gilat won the bids for three regional projects – in Huancavelica, Ayacucho and Apurimac.
These projects are BOT (Built, Operate and Transfer). The fiber-optic Transport networks will be built, operated for 1 year and transferred to the Ministry, while the Access networks based on wireless technologies will be operated for 10 years before being transferred to the Ministry.
In the frame of the Access network operation obligations, Gilat will connect about 600 public institutions to broadband services.
On top of the bids, Gilat expects additional revenues to be generated by enabling cellular carriers to acquire network capacity to address the growing needs for voice, data, and internet in these regions.
Gilat has demonstrated, with the successful rollout of the Integracion Amazonica Loreto (IAL) project in 2014, among many others in the region, that it has the required expertise to efficiently deploy large-scale network infrastructure in the most remote, mountainous and jungle areas of Peru.
“We are happy that Fitel has once again chosen Gilat for these challenging projects and we appreciate the continued confidence Fitel has in our ability to integrate and deliver communication solutions of all types,” said Erez Antebi, CEO of Gilat Satellite Networks. “Gilat’s experience in challenging terrain and its ability to overcome operational obstacles are key to achieving the government objective of connecting rural villages to broadband services. We look forward to bringing high-quality communications services to the most remote areas of Peru, while contributing to the advancement of social services, education, economic development and employment in these regions. Gilat is committed to a fruitful collaboration with Fitel on this project as well as on future initiatives.”
Antebi added, “Apart from the $285 million award, we expect this project to generate additional revenues for Gilat by enabling telecom and mobile operators to provide data services to the local population using the new infrastructure.”
Gilat Satellite Networks is a leading provider of products and services for satellite-based broadband communications. Gilat develops and markets a wide range of high-performance satellite ground segment equipment and VSATs, with an increasing focus on the consumer and Ka-band market. In addition, Gilat enables mobile SOTM (Satellite-on-the-Move) solutions providing low-profile antennas, next generation solid-state power amplifiers and modems. Gilat also provides managed network and satellite-based services for rural telephony and Internet access via its subsidiaries in Peru and Colombia.
With over 25 years of experience, and over a million products shipped to more than 85 countries, Gilat has provided enterprises, service providers and operators with efficient and reliable satellite-based connectivity solutions, including cellular backhaul, banking, retail, e-government and rural communication networks. Gilat also enables leading defense, public security and news organizations to implement advanced, on-the-move tactical communications on board their land, air and sea fleets using Gilat’s high-performance SOTM solutions.