Gilat VSAT contact with NBN, Ka-band initiatives boost revenues

Second quarter revenues for Gilat Satcom received a boost from the huge VSAT deployment project on behalf of NBN Co. as well as the Ka-band initiatives implemented last year.

In a conference call last August 17,  CEO Erez Antebi told investors that Gilat's 2011 Ka-band initiatives were now starting to pay off. As a series of high-capacity Ka-band satellites start launching during the late half of 2012 and enter service in 2013, Gilat will have advanced VSAT equipment designed specifically to leverage those new satellites' vast broadband capacity.

Mr. Antebi cited the recently-developed SkyEdge 2-c Aries VSAT, a new consumer terminal designed to support SES broadband satellite Internet service and other services. Connectivity and capacity will be provided by current and future Ka-band satellites.

Gilat is also working on IP tracking,  satellite-on-the-move connectivity, and other Ka-band applications due to the considerable market interest. “With our highly advanced communications equipment and versatile technology enabling multiple applications," Mr. Antebi said, "coupled with our flexibility in meeting both technical and business requirements and our strong pipeline, we believe we are well positioned to take advantage of the Ka-band satellite growth going forward."

Mr. Erez Antebi also used the conference call to report on Gilat's financial results for the second-quarter of 2012. Gilat earned $85.3 million in quarterly revenues, a modest increase compared to last year's second-quarter. The company's commercial division was able to generate a higher level of revenues thanks to its VSAT contract with NBN in Australia.

Gilat has an agreement with Australian operator Optus Networks to provide hubs, VSATs, site installation and network operation for Australia's National Broadcasting Network (NBN) Co. Gilat recently deployed the first 10,000 VSATs ordered and may end up deploying up to 48,000 sites by 2013.

Gilat deploys first 10,000 VSAT systems in Australia for NBN Interim Satellite Service

On August 14, 2012, Gilat Satellite Networks Ltd announced the successful deployment of the first 10,000 SkyEdge II VSAT (Very Small Aperture Terminals) systems in Australia as part of the Interim Satellite Service of NBN Co.

Last May, Optus and Gilat announced that they expect to deploy up to 48,000 Gilat SkyEdge II VSATs over the next three years. Gilat will install and maintain the VSAT CPE; it will also handle end-to-end management and maintenance duties for the NOC (Network Operating Center) and eleven hubs across three earth stations. 

The SkyEdge II network will use IPSTAR’s Ka-band / Ku-band multi-spotbeam capacity and Optus’ Ku-band capacity to bring satellite broadband services anywhere in Australia, including remote regions unreachable by traditional fiber or advanced wireless networks. Australian households, small businesses, indigenous communities, not-for-profit organizations, schools, health clinics, and local council facilities will be able to be benefit from high-speed, high-capacity satellite internet-based services such as VoIP calls and media-rich applications.

Gilat and Optus' current VSAT network project is potentially worth $120 million, depending on the final design and the costs of network implementation.