Gilat Receives $25 Million Contract for Digital Inclusion in Peru's Cusco Region.

Gilat Satellite Networks has secured a $25 million contract with Pronatel to modernize the Regional Broadband network in Peru's Cusco region. The project will provide high-speed internet of 200 Mbps to 208 public institutions and 69 public WiFi hotspots. The upgrade is expected to be completed in 12 months, followed by a five-year service period. This initiative aims to enhance digital inclusion and improve access to essential services in remote Peruvian communities.

Gilat Satellite Networks Ltd. (NASDAQ: GILT) has announced a significant agreement with Pronatel, Peru's national telecommunications program, to modernize the Regional Broadband network in the Cusco region. The $25 million contract, signed by Gilat's Peruvian subsidiary, Gilat Perú, is set to upgrade the network to provide high-speed internet of 200 Mbps to nearly 208 public institutions, including schools, health centers, and police stations, and 69 public free WiFi Hotspots [1].

The modernization project is scheduled to be completed within the next 12 months, with services to be delivered for a period of five years. This initiative aims to enhance digital inclusion and improve access to essential services in remote Peruvian communities, while also laying the groundwork for future bandwidth growth in rural areas [2].

The upgraded network will deliver significant bandwidth for rural connectivity, enabling essential services across education, healthcare, and public safety sectors. This new project builds on Gilat's ongoing partnership with the Peruvian State and underscores the company's commitment to bringing advanced connectivity to even the most remote and hard-to-reach regions [1].

The contract structure is particularly favorable, including a 12-month implementation phase for network modernization followed by a 5-year service delivery period. This creates a predictable revenue stream beyond the initial deployment, providing Gilat with revenue visibility through 2030 [2].

Gilat's existing infrastructure and operational expertise in Peru will facilitate efficient execution of the project, potentially generating stronger margins than new-market entries. The company's long-standing relationship with the Peruvian government creates a competitive moat against potential challengers [2].

For investors, this agreement reinforces Gilat's position as a trusted provider in digital inclusion projects, a growing segment as governments worldwide prioritize rural connectivity. The contract's five-year service component adds to Gilat's backlog and provides revenue visibility through 2030, a meaningful contribution for a company of Gilat's size [2].

References:
[1] https://www.marketscreener.com/news/gilat-peru-signs-an-additional-25-million-agreement-with-pronatel-ce7c50d9da8ff522
[2] https://www.stocktitan.net/news/GILT/gilat-receives-an-additional-25-million-agreement-to-advance-digital-2x8limrmqi6d.html