Peru to launch 5 regional broadband projects in 2025

Peru will inaugurate five more broadband projects to complement its backbone fiber optics network in the first quarter of 2025.

Currently, 10 broadband projects provide connectivity to 2,563 population hubs and 4,590 public institutions like schools, health centers and police stations, deputy communications minister Carla Sosa Vela said, according to a press release.

The five new networks will operate in the regions of Amazonas, Huánuco, Pasco, Puno and San Martín and benefit over 7,540 public institutions and 2mn people, Sosa said.

The US$108mn Amazonas project was awarded to Gilat and “is progressing faster than planned,” CEO Adi Sfadia told the Q3 results call.

“The implementation phase is now complete and the expansion project is under supervision. The operational phase is expected to start around the end of the year, after several delays in the supervision process,” he added.

Both the Pasco and Huánuco networks were awarded to the Bandtel consortium for US$64mn and US$84mn, respectively.

The US$68mn San Martín network went to YOFC and the US$131mn Puno project to Orocom.

The contracts were signed in 2018 and 2019, and several amendments were added since then.

Regional networks complement Peru's fiber backbone operated by the State. It has 51 clients, an increase of 195% in contracted capacity compared to January 2022, according to Sosa.

Gilat

“Looking ahead in Peru, we have a strong pipeline, including a number of opportunities on the horizon, including the maturity of several large RFPs with Pronatel, and the Peruvian government as well as several project expansions and extensions,” Sfadia told the call.

In addition to Amazonas, the company has five regional networks in operation. The sixth should start operations later this year or early next, Sfadia said.

Around 80% of the company's Peru revenue corresponds to recurring revenue.

In the third quarter, Gilat obtained an additional US$4mn due to the payment of a case it won against national telecoms program Pronatel and the communications ministry related to cases from 2018 and 2020, totaling US$29mn.