Gilat Awarded $285 Million Regional Telecommunications Infrastructure Project by Peru's Fitel
07 March 2015 - 1:44AM
Largest contract ever won by Gilat
Additional revenues expected from telecom and
mobile operators providing cellular data services using the new
infrastructure
Gilat Satellite Networks Ltd. (Nasdaq:GILT) (TASE:GILT), a
worldwide leader in satellite networking technology, solutions and
services, announced today that Peru's Fitel (Fondo de Inversion en
Telecomunicaciones / Telecommunications Investment Fund) awarded a
$285 million regional telecommunications infrastructure project to
Gilat. This is the largest contract ever won by the company since
its inception.
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.
In the frame of the Access network operation obligations, Gilat
will connect about 600 public institutions to broadband
services.
On top of the bids, Gilat expects additional revenues 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.
"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 Erez Antebi, CEO of Gilat Satellite
Networks. "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. We look forward to bringing high-quality communications
services to the most remote areas of Peru, while contributing to
the advancement of social services, education, economic development
and employment in these regions. Gilat is committed to a fruitful
collaboration with Fitel on this project as well as on future
initiatives."
Antebi added, "Apart from the $285 million award, we expect this
project to generate additional revenues for Gilat by enabling
telecom and mobile operators to provide data services to the local
population using the new infrastructure."
About Gilat
Gilat Satellite Networks Ltd (Nasdaq:GILT) (TASE:GILT) is a
leading provider of products and services for satellite-based
broadband communications. Gilat develops and markets a wide range
of high-performance satellite ground segment equipment and VSATs,
with an increasing focus on the consumer and Ka-band market. In
addition, Gilat enables mobile SOTM (Satellite-on-the-Move)
solutions providing low-profile antennas, next generation
solid-state power amplifiers and modems. Gilat also provides
managed network and satellite-based services for rural telephony
and Internet access via its subsidiaries in Peru and Colombia.
With over 25 years of experience, and over a million products
shipped to more than 85 countries, Gilat has provided enterprises,
service providers and operators with efficient and reliable
satellite-based connectivity solutions, including cellular
backhaul, banking, retail, e-government and rural communication
networks. Gilat also enables leading defense, public security and
news organizations to implement advanced, on-the-move tactical
communications on board their land, air and sea fleets using
Gilat's high-performance SOTM solutions. Gilat is a company under
the control of the FIMI Private Equity Funds.
For more information, please visit us at www.gilat.com
Certain statements made herein that are not historical are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. The words "estimate," "project,"
"intend," "expect," "believe" and similar expressions are intended
to identify forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties. Many
factors could cause the actual results, performance or achievements
of Gilat to be materially different from any future results,
performance or achievements that may be expressed or implied by
such forward-looking statements, including, among others, changes
in general economic and business conditions, inability to maintain
market acceptance to Gilat's products, inability to timely develop
and introduce new technologies, products and applications, rapid
changes in the market for Gilat's products, loss of market share
and pressure on prices resulting from competition, introduction of
competing products by other companies, inability to manage growth
and expansion, loss of key OEM partners, inability to attract and
retain qualified personnel, inability to protect the Company's
proprietary technology and risks associated with Gilat's
international operations and its location in Israel. For additional
information regarding these and other risks and uncertainties
associated with Gilat's business, reference is made to Gilat's
reports filed from time to time with the Securities and Exchange
Commission.
CONTACT: Gilat Satellite Networks
Joelle Inowlocki
JoelleI@gilat.com
KCSA Strategic Communications
Phil Carlson, Vice President
(212) 896-1233
pcarlson@kcsa.com
Thomas Mei, Account Executive
(212) 896-1208
tmei@kcsa.com
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