Gilat has signed a $ 12 million contract for the operation and maintenance of a broadband communications network
Posted on Sep 13, 2021 by Ifi Reporter
Gilat, which develops and markets satellite communications products and services, continues to increase its recurring revenue component: The company, managed by Adi Tzafdia, has signed a $ 12 million contract for the operation and maintenance of a broadband communications network it has set up in the Cusco area. Peruvian for the next 3 years.
The contract was signed after the construction and testing phase of the network, which ended in Cusco in the first half of 2021. Gilat, which is controlled by the Phimie Foundation, is responsible for ensuring broadband Internet services on 2,000 km of fiber optics, which include more than 100 communication nodes and data centers.
The current contract increases Gilat's recurring revenues from the communications networks it has established for the Peruvian Ministry of Communications to $ 43 million a year. Gilat has set a goal of generating recurring revenues of $ 50 million per year from the operation and maintenance of communications networks in the six districts in which the company operates in Peru. The company has won contracts for the six remote districts, where there is no economic viability to lay a fiber-based communications network, and to provide them with broadband Internet must be based on satellite communications.
The current contract embodies a significantly higher profitability than Gilat's average, probably a gross profitability of more than 50%. This is because the revenues are generated from the communications infrastructure established in investments that have already been made, and the only cost for them is the maintenance of Gilat's network.
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