Gilat (NASDAQ: GILT) signs $28 million Peru broadband contract in Ica

What happened

Gilat Satellite Networks Ltd. (NASDAQ: GILT) said its Peruvian subsidiary signed a $28 million agreement with Pronatel to upgrade broadband in Ica. The project is expected to be completed by mid-year 2027 and then enter a seven-year operating phase.

The upgraded network is expected to deliver internet speeds 20 times faster than those now available to 116 public institutions. It will also provide free Wi-Fi in 30 public squares.

Gilat said Ica is the fifth region in Peru to receive a broadband network upgrade since 2025. The company said the upgrade will improve network capacity across different locations and operating environments.

It will also help institutions access and deliver essential digital services, including education, healthcare and public safety.

Key numbers

Metric	Latest	Change	Source
Contract value	$28 million		SEC 6-K
Internet speed increase	20 times faster		SEC 6-K
Public institutions	116 public institutions		SEC 6-K
Public squares	30 public squares		SEC 6-K
Construction completion	mid-year 2027		SEC 6-K
Operational phase	seven-year operational phase		SEC 6-K

Read more: Gilat Satellite Networks (GILT) stock analysis and investment case

Why it matters

OptimistFi's case is that Gilat can be a good business if satellite-connectivity demand keeps flowing through its ground-equipment and terminal capabilities. This filing adds a $28 million agreement and a seven-year operating phase after construction.

The release also gives investors more detail on the scale of the work. The project is meant to serve 116 public institutions and 30 public squares, and Gilat says speeds will be 20 times faster than what is currently available.

The deal also expands Gilat's footprint in Peru. Ica is the fifth region there to get a broadband network upgrade since 2025, so this looks like part of an ongoing rollout rather than a one-off award.

Construction still comes first. The project is expected to finish by mid-year 2027 before the seven-year operating phase begins, so the near-term focus remains on execution rather than current operating results.

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What's next

Construction is expected to finish by mid-year 2027. After that, the project enters its seven-year operating phase.

Those dates are the next milestones in the release. If construction slips, the operating phase starts later. If Gilat stays on schedule, the contract should move into a longer service period in Ica.

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