Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) has won a contract, potentially worth up to $120 million, to supply its SkyEdge II Very Small Aperture Terminal (VSAT) to Optus Networks Pty Ltd. for the Australian Government’s National Broadband Network Company’s (NBN) Interim Satellite Service. Gilat will install, operate and maintain the network via a new Australian subsidiary, Gilat Satellite Networks Australia Pty Ltd.
NBN will provide connectivity to regional and rural locations via satellite technology in regions where it is difficult to provide either fiber optic or advanced wireless connectivity. The Interim Satellite Service is a first stage of the project to provide up to 6 Mbps download and 1 Mbps upload broadband services to eligible Australian households, small business and indigenous communities.
Gilat will initially provide 11 SkyEdge II hubs and 20,000 SkyEdge II VSATs within up to three years. The agreement could be expanded more hubs and to 48,000 VSATs. Gilat Australia will provide hub maintenance and operations at three sites for five years.
Gilat chairman and CEO Amiram Levinberg said, “The Australian government has set a goal to provide next-generation network coverage to all of Australia, and satellite is a natural fit for complementing fiber and wireless technologies to achieve this. This large scale VSAT network will utilize Optus’ satellite capacity as well as IPSTAR’s multi spot beam satellite. We are proud to provide our technology as well as our experience in rolling out and operating large scale satellite networks."
Gilat's share price rose 4.7% on Nasdaq on Friday to $4.92, giving a market cap of $200 million, and rose 7.2% in morning trading on the TASE today to NIS 16.72.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2011
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