Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) has signed collaboration agreements with RTComm, the satellite service arm of Russian telecommunications operator Rostelecom Group (RTS: RTKM, RTKMP; Pink Sheets: ROSYY) and NIIR FSUE, an institute for technology advancement of the Ministry for Telecommunications and Mass Communications. Gilat will supply network equipment and Ka-band end-user terminals for RTComm's future constellation of multi spot-beam satellites. Gilat did not disclose the size of the deal, but since Rostelecom is due to invest hundreds of millions of dollars in the project, and assuming two million subscribers, Gilat's potential income could be tens of millions of dollars.
Gilat will also transfer technology for local manufacture in Russia, and R&D cooperation.
The project is an initiative of Russian President Dmitri Medvedev to close the digital divide across Russia.
Gilat president and CEO Amiram Levinberg said, "This is an important award for Gilat, reinforcing our position in the Ka-band marketplace. We see Ka-band technology expanding to more regions in the world, and offering new opportunities with much higher capacities and at lower prices to the subscribers."
Gilat's share price opened at $3.72 on Nasdaq today, giving a market cap of $152 million, and rose 2% on the TASE to NIS 14.40.
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2011
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