Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT), which is controlled by the FIMI fund, has won a $286 million contract in Peru to set up telecommunications networks in rural areas. Gilat says that the contract with Fitel (Fondo de Inversion en Telecomunicaciones / Telecommunications Investment Fund) is the largest contract it has ever won.
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. Gilat will connect about 600 public institutions to broadband services.
Gilat expects additional revenue 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," the company's announcement said.
"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 Gilat Satellite Networks CEO Erez Antebi, "Gilat's experience in challenging terrain and its ability to overcome operational obstacles are key in achieving the government objective of connecting rural villages to broadband services."
Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2015
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