Gilat Satellite Networks Ltd. (Nasdaq: GILTF; TASE: GILTF) is expanding its activity in the international lottery industry. The company today announced that Comsat International Inc. purchased two SkyEdge satellite hubs operating in a redundant geographic mode and nearly 5,000 very small aperture terminals (VSAT) to provide broadband connectivity services for Caixa Economica Federal in Brazil. Comsat is Brazil's second-largest satellite service provider and Caixa is one of Brazil's largest public banks and is the institution responsible for managing the country's federal lottery.
Gilat did not disclose the size of the contract, but market sources estimate it at $6 million. The company previously supplied VSATs to state lottery operators in the US.
Comsat is providing a hybrid IP network that is comprised mainly of VSATs, with some terrestrial-based connectivity. The network, which is now in the process of being deployed, will link Caixa's sites for both lottery transactions and general banking, including bill paying services.
Gilat do Brasil Ltda. general manager Russell Ribeiro said, "Comsat's deployment of our technology and services on such a large scale is indicative of their trust in our organization. This contract further establishes our position as a leading provider of satellite networks to the global lottery industry."
Gilat develops, manufactures and markets VSAT for satellite communications and provides related services. The company has a market cap of $165 million.
Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2006
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