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Israel’s Gilat Receives Large Contract For Telecoms Infrastructure From Peru’s Fitel

Photograph courtesy of Gilat Satellite Networks Ltd.

Israel’s Gilat has received a U.S.$153.6 million contract from the Peruvian telecommunications investment fund, Fitel, to help build rural telecommunications infrastructure in the Amazonas and Ica regions of Peru and help bridge the rural divide.

These two projects were announced last week. The Amazonas region project was awarded for U.S.$108 million and the Ica region for U.S.$45.6 million. Gilat expects additional revenues to be generated by selling network capacity to cellular carriers to address the growing needs for voice, data, and internet in these regions, as well as the development of platforms for e-learning, e-health and e-government.

Gilat already has four telecommunications projects nearing completion in the regions of Huancavelica, Ayacucho, Apurimac and Cusco. In the two additional regions, Gilat will build the infrastructure required to support the Peruvian population including connecting schools, police stations and health centers.

“The fact that Gilat was awarded two additional regional projects by Fitel testifies to the confidence placed in our ability to deploy massive telecommunications projects under challenging conditions,” said Arieh Rohrstock, General Manager of Gilat Peru and Corporate Vice President. “Gilat’s interest and long term goal with the six regions won so far, and potentially additional future regional wins, is to turn Peru into a source of secured, multi-year, significant, profitable revenue, generated from both secure government fees as well as from selling services such as e-learning, e-health and other OTT services.”

“It is a pleasure to see the continued effort and materialization of providing broadband through financing contracts, this time delivering service to the Amazonas and Ica regions,” added Virginia Nakagawa, Vice Minister of Communications, Peru. “Furthermore, I personally congratulate ProInversion for executing a transparent and flawless process that has successfully concluded by closing of these contracts with Gilat.

Fitel’s regional initiative represents the complementary phase of the Peruvian National Fiber Backbone project, aimed to connect rural villages to broadband services.

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