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Gilat awarded $108 Million rural connectivity project by Fitel in Peru

Peruvian investment fund Fitel has awarded a regional telecommunications infrastructure project to satellite operator Gilat Satellite Networks.

The $108 million initiative based in the region of Cusco complements the projects previously awarded to Gilat by Fitel in the regions of Huancavelica, Ayacucho and Apurimac, which are currently underway.

“We have taken an additional step for the development of Peru. Today we start covering new villages with high speed broadband. I'm pleased because strategic alliances between public and private sectors are strengthening with those projects,” said Jose Gallardo Ku , Minister of Transport and Communications.

Fitel’s regional initiative represents the complementary phase of the Peruvian National Fibre Backbone project, aimed to connect rural villages to broadband services. Within the framework of this phase, Gilat won the bid for a regional project – in Cusco located in the south of Peru.

The fiber-optic Transport networks will be built and immediately transferred to the Ministry of Telecommunications, while the Access networks based on wireless technologies will be built and operated for 10 years before being transferred to the Ministry.

In the frame of the Access network operation obligations, Gilat will connect about 615 public institutions and 371 remote villages to broadband services.

"The fact that Gilat was awarded an additional regional project by Fitel for $108 million testifies to the confidence placed in our ability to deploy massive telecommunications projects under challenging conditions" said Dov Baharav, Chairman and interim CEO of Gilat. 

“On top of the bid, 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,” added Baharav.

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