Gilat Satellite Networks (Nasdaq: GILTF) today announced that on September 27th it signed a contract with Fondo de Inversion en Telecomunicaciones del Peru (FITEL) to provide a fixed rural satellite telephony network.
The FITEL network will serve more than 2,000 communities throughout the northern, northern-central and central-eastern regions of Peru. The project also includes the provision of Internet connectivity to 10 percent of those sites. The value of the project is approximately US$27 million.
FITEL is Peru's national telecommunications investment fund, which uses a percentage of the revenues of the country's telecommunications companies to develop communications systems in rural regions. FITEL is a department of the Peruvian national telecommunications agency OSIPTEL.
The network, based on Gilat's DialAw@y IP Very Small Aperture Terminal (VSAT) product, is expected to begin deployment this month and is scheduled to reach completion by the end of 2002. Gilat will expand its existing rural telephony infrastructure in Peru - which already serves hundreds of thousands of citizens - to provide FITEL with a comprehensive VSAT network solution.
Luis Bonifaz, General Manager of FITEL said, "VSAT networks are clearly the best way to bring reliable telephony and Internet service to remote communities. We conducted a thorough technical and economic evaluation of potential suppliers for this project of rural telephony expansion. Gilat was selected primarily because of its past success providing equipment and services for other projects we have managed in Peru. Gilat's technology exceeds our specifications and will allow us to serve millions of citizens in these regions."
Gilat Latin America Chief Executive Officer Giora (Gigi) Oron said, "This award represents the continuation of our rural telephony market leadership in Peru. In the future, we are confident that we will have the opportunity to add Internet service to even more of these original sites and expand this network to additional communities."
Rocio del Campo, Gilat's General Manager in Peru, said, "The FITEL project allows us to better consolidate our position in Peru. Furthermore, this network will enable us to serve more than four million citizens in rural villages, many of whom are living without basic communications services."
DialAw@y IP is a VSAT product capable of providing high-speed Internet connectivity and toll-quality telephony service at the same time. Each unit supports a PC/LAN connection and up to six telephone lines. It is a low-cost solution for the fulfillment of Universal Service/Access Obligations, Public Call Office requirements and small office/home office (SOHO) requirements for bundled telephony and Internet access. According to the Comsys Report, Gilat has 78.6% of the global market share for rural applications, combining telephony and high-speed Internet.
Published by Israel’s Business Arena on October 3, 2001.