Gilat to provide Telmex with network

PETAH TIKVA, Israel -- Gilat Satellite Networks Ltd. signed a contract with Telefonos de Mexico, S.A. de C.V. (Telmex) to provide a fixed rural satellite telephony network for use in public call offices in almost 2,000 communities throughout Mexico's national territory.

The contract represents the first award under a Telmex program to expand rural telephony coverage, and is expected to be one of the largest known deployments of fixed satellite telephony in the world.

Hector Slim, Telmex's operational support director, says, "Telmex conducted a thorough technical and economic evaluation of potential suppliers for our project of rural telephony expansion. Gilat was selected because of its demonstrated expertise in satellite telephony technology and its strong presence in the Latin American market. Gilat's technology will allow us to provide communications services to small communities across the national territory."

The network, based on Gilat's FaraWay Very Small Aperture Terminal (VSAT), will begin deployment immediately, and is expected to reach completion in mid-2001. FaraWay employs a full-mesh, DAMA network architecture that maximizes the use of available satellite and ground-based resources. It satisfies the exacting standards of PSTN and private network operators for voice transmission, data, call accounting and maintenance.

Under terms of the agreement, Gilat will provide a comprehensive VSAT network solution, including the ongoing operation and remote maintenance of the network.

Yoel Gat, chairman and chief executive officer of Gilat, says, "This award represents the continuation of our rural telephony market leadership in Latin America and worldwide. We welcome the opportunity to work with Latin America's largest telephone carrier to build one of the world's most extensive satellite telephony networks."