Gilat wins $28m Peru contract to upgrade Ica region broadband
Gilat Satellite Networks has secured a $28 million contract through its Peruvian subsidiary, Gilat Perú, to upgrade broadband infrastructure across Peru's Ica region. The agreement, signed with Pronatel, the country's national telecommunications programme, covers construction expected to complete by mid-2027, followed by a seven-year operational phase.
The upgraded network will deliver internet speeds the company says are 20 times faster than those currently available, serving 116 public institutions and providing free Wi-Fi access across 30 public squares. Targeted services include education, healthcare and public safety connectivity. Gilat describes this as the fifth Peruvian region to receive a broadband upgrade since 2025, suggesting a rolling national programme rather than a one-off engagement.
The deal
Arieh Rohrstock, President of Gilat Perú, pointed to the company's track record of deploying and operating large-scale networks in geographically complex terrain: "Gilat Perú has built this expertise through years of deploying, upgrading and operating large-scale networks across the country." The company's work in rural and remote areas is central to the case it makes to government clients; satellite-based backhaul remains one of the few technically viable options for bridging connectivity gaps in Peru's Andean and coastal geographies.
Rafael Arias Velarde, Executive Director of Pronatel, framed the Ica award within the Ministry of Transport and Communications' broader digital-divide agenda, noting that greater connectivity capacity translates into "better services and opportunities for people." The seven-year operations tail is notable: it locks in recurring revenue for Gilat beyond the construction phase and provides Pronatel with long-term service continuity rather than a handover model.
Market context
Satellite and hybrid connectivity for underserved regions has become a competitive market globally, with Viasat, Hughes Network Systems (now part of EchoStar) and a growing number of low-earth-orbit service providers all targeting government and public-sector broadband programmes in Latin America. Starlink has expanded its footprint in Peru and neighbouring markets, intensifying the case for incumbents like Gilat to emphasise managed-service depth and local operational presence over raw throughput alone.
Gilat's Peruvian subsidiary has built a multi-year track record with Pronatel across successive regional projects, which provides a degree of commercial defensibility that a new entrant would find difficult to replicate quickly. Nonetheless, the competitive picture will tighten as LEO constellations mature and governments revisit procurement models that favour ground-station-heavy geostationary architectures.
Regulatory and policy read-across
The Pronatel programme sits within Peru's wider digital-infrastructure commitments under national broadband plans aligned to ITU connectivity targets. Contracts of this type are typically subject to government procurement oversight and, for NASDAQ-listed companies, must be disclosed as material agreements, which Gilat has done here. Investors should note that the forward-looking elements, including the 2027 construction completion and seven-year service phase, are subject to the usual risks associated with government infrastructure programmes: scope changes, local permitting, and geopolitical or economic disruption.
The contract extends Gilat's Latin American revenue base at a moment when the company is also investing in defence and mobility segments through subsidiaries including Gilat DataPath and Gilat Wavestream. Analysts covering the stock will watch for progress updates on construction milestones and whether additional Peruvian regional awards follow the Ica contract.