Gilat wins $14m Peru fibre contract to connect 273 public sites
Gilat Satellite Networks has secured a $14 million agreement through its Peruvian subsidiary, Gilat Perú, to build a fibre-optic broadband network across southern Ayacucho. The contract was signed with the Regional Government of Ayacucho under Peru's Works for Taxes mechanism, known locally as Obras por Impuestos (OxI), which allows companies to fund public infrastructure projects in exchange for tax credits. Delivery is expected within 18 months.
The project covers more than 1,060 kilometres of optical fibre and includes network monitoring systems, local area network installations, end-user equipment and training programmes. When complete, the network is expected to serve 273 public institutions across 109 localities, including 236 schools and 37 healthcare facilities, with an estimated 20,000 residents set to benefit.
The deal
Arieh Rohrstock, Corporate Senior Vice President and President of Gilat Peru, said the project extends the company's established track record in the country. "By extending access to reliable high-speed internet services, this project will help advance digital inclusion and improve access to education, healthcare and other essential services for communities throughout the region," he said.
Wilfredo Oscorima Núñez, Regional Governor of Ayacucho, characterised the deal as a continuation of an existing working relationship with Gilat, citing its expected benefits to education and healthcare access across the region. The OxI mechanism has become a significant procurement route for connectivity infrastructure in Peru, particularly in regions where central government budgets are constrained.
Market context
Latin America remains one of the more active markets for publicly funded rural broadband deployment, with national and subnational governments using a mix of direct procurement, public-private partnerships and tax-incentive schemes to close connectivity gaps. Gilat has operated in Peru for a number of years and frames the Ayacucho contract as an extension of a broader country presence rather than a market entry.
The wider satellite and terrestrial connectivity sector is seeing increased competition from low-earth-orbit providers, including SpaceX's Starlink, which has expanded across Latin American countries and targets remote and underserved areas that overlap substantially with Gilat's traditional market. For a project of this nature, however, the use of terrestrial fibre rather than satellite backhaul is notable: the 1,060-kilometre fibre deployment suggests Gilat is positioning itself as a full-stack infrastructure contractor, not solely a satellite vendor.
Regulatory conditions in Peru are broadly supportive of connectivity expansion; the government's Digital Agenda and Fondo de Inversión en Telecomunicaciones (FITEL) have channelled funding into rural coverage for over a decade. The OxI mechanism adds a private-sector financing layer that reduces direct budget pressure on regional governments, making it an increasingly common route to market for vendors with a local subsidiary and established credibility.
For Gilat, the contract adds to a growing portfolio of government-facing infrastructure work. Investors will look to the company to confirm whether the project carries service and maintenance revenue beyond the initial 18-month build phase, and whether similar OxI pipeline opportunities are being pursued in other Peruvian regions.