Gilat Signs $25M Deal to Upgrade Peru's Cusco Regional Broadband Network.

Gilat Satellite Networks' Peruvian subsidiary, Gilat Perú, has signed a $25 million agreement with Pronatel to modernize the Regional Broadband network in the Cusco region. The upgraded network will provide high-speed internet to 208 public institutions and 69 public free WiFi hotspots, improving access to education, healthcare, and public safety services. Services will be delivered for five years, with the migration planned over the next 12 months. This digital inclusion initiative will lay the groundwork for future bandwidth growth in rural areas.

Gilat Satellite Networks (NASDAQ: GILT) has secured 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 through Gilat's Peruvian subsidiary, aims to enhance digital inclusion and improve access to essential services in remote communities over the next 12 months, followed by a five-year service period.

The upgraded network will deliver 200 Mbps high-speed internet to 208 public institutions, including schools, health centers, and police stations, along with 69 public free WiFi hotspots. This initiative is crucial for improving access to education, healthcare, and public safety services in the region.

The contract structure is particularly favorable, with a 12-month implementation phase for network modernization followed by a 5-year service delivery period. This creates a predictable revenue stream for Gilat, extending beyond the initial deployment. The technical specifications, including the 200 Mbps high-speed internet and extensive coverage, are notable for their potential to significantly enhance rural connectivity.

Gilat's long-standing relationship with the Peruvian government and its existing infrastructure in the region are key advantages. These assets enable efficient execution and potentially stronger margins than new-market entries would generate. The company's experience in delivering large-scale connectivity initiatives positions it to complete the migration quickly and effectively.

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 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.

References:
[1] https://www.stocktitan.net/news/GILT/gilat-receives-an-additional-25-million-agreement-to-advance-digital-2x8limrmqi6d.html