Gilat Satellite Networks Ltd. (NASDAQ, TASE: GILT) has reached a critical milestone in Peru with approval to enter the operational phase of the telecom project the company was awarded in 2015 for an aggregate value of $108 million.
This phase enables the start of delivery of broadband internet services to over a million and a half people in Cusco. Entering the operational phase will enable Gilat to unlock access to recurring revenue of multi million dollars per annum of operations fees, for a period of ten years, as well as to continue selling services over the network.
Furthermore, during the project’s operation, over 600 representatives of schools, health, post and police stations will receive training, and 71 hot spots will be established in public spaces to provide internet to the population.
“I am most pleased to receive approval from the government of Peru, to enter into the operational phase of our project in Cusco,” said Arieh Rohrstock, General Manager Gilat Peru and Corporate SVP. “We are delighted with this remarkable milestone that will boost our profitability both from operational fees as well as services over the network while delivering on our corporate value of contributing to bridging the digital divide in Peru.”