GVT of Gilat Group Wins Second Tender in Chile: $2.5 Mln Rural Phone Network

GVT received a twenty year operating concession. The company has also won a $3.9 million tender in Peru.

Global Village Telecom (GVT) has won another Chilean government tender, for setting up and operating a rural telephone network using Gilat’s satellite technology. The project involves 250 telephones, each with 1-3 lines, in remote settlements in Chile. The company will receive $2.5 million from the government for setting up the network, and a twenty year concession to charge for calls.

This is the second tender the company has won in Chile. The first involved some 1,500 villages, and was worth $4 million. Setting up of the system began seven months ago, the first stage of the network was inaugurated a month ago, and Gilat’s telephones are now operational in 150 villages.

The company recently announced it had won another tender in South America, this time in Peru, for setting up 193 telephones in remote settlements in four districts of the country, for $3.9 million and with a twenty year operating concession. Next week, final negotiations are set to take place before the contract is signed with the Peruvian government.

GVT was set up by Gilat Satellite Networks a few months ago, and raised $40 million in a private placement. Its current owners, besides Gilat Satellite Networks, are Clal Industries, Discount Investments and PEC, and the pension fund of US investment house Merrill Lynch.

Published by Israel's Business Arena on July 7, 1998

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