Satellite hardware and network builder Gilat of Israel is moving forward with a strategy of building an entire cellular network – with $90 million in cash – in exchange for multi-year commitments to pay for the service, reported Space News.
Yona Ovadia, Gilat’s CEO said, “This meets our strategy to engage in projects with recurring revenues with a goal of maintaining a more consistent and profitable revenue stream.”
According to Gilat Chief Financial Officer Adi Sfadia, the pivot to offering turnkey products to mobile network operators started in 2016, and includes very small aperture terminals (VSATs), hubs to control the network, installation, maintenance and oftentimes satellite capacity.
Gilat is also working on other national projects including completing a telecom network for Peru, building both satellite and terrestrial infrastructure in remote regions of the country. Once the project is complete, the company will transition to an operational model, “with recurring and more profitable revenue, as was our goal,” said Ovadia.
Additionally, Gilat received a contract worth “tens of millions of dollars” from Australia’s National Broadband Network and satellite network operator SpeedCast, to build a business-focused satellite service across Australia. Ovadia noted that these types of projects are evidence of new growth in enterprise connectivity.
February 26, 2018
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