Gilat Receives Over $10M Contract Extension for Cellular Backhaul Services
Gilat Satellite Networks has secured a contract extension worth over $10 million from Internet Para Todos (IPT) to provide Cellular Backhaul services in rural Peru. The 6-year agreement will enhance 4G connectivity across 700 existing sites and 100 new sites in the Peruvian jungle, serving over one million people. This partnership aims to address the digital divide in Latin America by overcoming geographic and economic challenges, ensuring high-speed internet access in underserved areas. IPT is a collaboration between Telefónica, Meta, IDB Invest, and CAF focused on sustainable connectivity.
- Gilat secures a $10M contract extension, boosting revenue.
- Expansion to 100 new sites in the Peruvian jungle, widening market reach.
- Enhanced 4G services to over 1 million people, increasing user base.
- None.
Insights
The contract extension worth
This contract extension emphasizes Gilat's strategic positioning in the rural connectivity market, a sector poised for significant growth. The partnership with IPT, backed by major players like Telefónica and Meta, lends credibility and potential market expansion opportunities to Gilat. By focusing on rural areas, Gilat taps into an underserved market, aligning with global initiatives to bridge the digital divide. The emphasis on enhancing 4G services suggests that Gilat is also preparing these regions for eventual upgrades to 5G, which can provide long-term growth. However, investors should consider the competitive landscape and any emerging technologies that might disrupt traditional satellite backhaul solutions.
Gilat's continued partnership with IPT to deliver high-speed terrestrial connectivity is noteworthy from a technological standpoint. The extension to 100 new sites in the Peruvian jungle demonstrates Gilat's capability to operate in challenging geographical areas, which is a significant technical achievement. This contract also highlights Gilat’s expertise in integrating satellite and terrestrial networks to provide seamless connectivity. Such advancements typically require robust technology platforms capable of dealing with latency issues, bandwidth management and reliability in diverse environments. This capability can provide a competitive edge against other providers in both emerging and developed markets.
Connecting over 800 sites and providing high speed connectivity to over 1 million people in rural areas in Peru
PETAH TIKVA, Israel, July 09, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that Gilat received a follow-on 6 year order for over
IPT is a sustainable global collaborative initiative between Telefónica, Meta, IDB Invest and The Latin America Development Bank (CAF) to bridge the digital divide in Latin America under a sustainable model that would allow them to overcome the obstacles of bringing connectivity to rural and geographically complex areas.
Building on previous contracts, Gilat will enhance its 4G Cellular Backhaul services with IPT over terrestrial networks across the 700 sites in six regions that Gilat operates across Peru and 100 new sites in the Peruvian jungle. This improvement will provide access to high-speed terrestrial connectivity to over 1 million more people living in rural areas.
“We are excited to have closed this significant agreement, which will allow us to continue connecting Peruvians in rural areas in a sustainable way,” said Teresa Gomes De Almeida, General Manager of IPT. “We are very pleased to have found a partner that shares our vision of closing gaps and fostering inclusive development, ensuring that all Peruvians have access to the opportunities offered by connectivity.”
“We are deeply honored to continue our collaboration with IPT in addressing the technical and economic obstacles to bridging the digital divide and boosting connectivity in rural regions,” stated Arieh Rohrstock, Corporate SVP and General Manager of Gilat Peru. “This vote of confidence in Gilat’s expertise and abilities to both improve internet speeds and extend coverage to hundreds of rural villages aligns with our vision of the right of all people to be connected.”
About Gilat
Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we create and deliver deep technology solutions for satellite, ground, and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.
Our portfolio includes a diverse offering to deliver high-value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software-defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high-performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services.
Gilat’s comprehensive offering supports multiple applications with a full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: https://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, including those related to the current terrorist attacks by Hamas, and the war and hostilities between Israel and Hamas and Israel and Hezbollah. 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. We undertake no obligation to update or revise any forward-looking statements for any reason.
Contact:
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
hagayk@gilat.com
EK Global IR
Ehud Helft, Managing Partner
ehud@ekgir.com
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