Gilat Satellite Networks Ltd. reported a new multimillion-dollar contract with Nelco, an Indian satellite communications service provider, sending Gilat shares higher in premarket trading. The agreement calls for Nelco to use Gilat's SkyEdge IV hub platform to establish a Ka-band service network that will operate via the GSAT-N2 Ka-band high-throughput satellite (HTS).
Deliveries of the SkyEdge IV components are slated to occur during the next 12 months, according to the company. The implementation will be designed to support multiple connectivity segments, including aviation in-flight connectivity (Aero IFC), cellular backhaul and enterprise connectivity for remote locations.
SkyEdge IV is Gilat’s multi-orbit satellite ground system, created to enable high-capacity broadband networks. The platform is positioned to allow satellite operators to launch and manage advanced HTS services across enterprise, mobility and aviation markets.
Commenting on the contract, Ron Levin, President of Gilat’s Commercial Division, said, "Nelco’s selection of SkyEdge IV reflects the platform’s ability to support high-throughput satellite services with the flexibility required for diverse service requirements."
The order follows Gilat’s ongoing focus on supplying ground segment solutions for operators deploying Ka-band capacity. By supplying a hub platform tailored for multi-orbit operations, Gilat aims to provide infrastructure that supports a range of end markets and use cases, from in-flight entertainment and connectivity to extending cellular networks into difficult-to-reach areas and delivering enterprise links where terrestrial options are limited.
From an execution perspective, the 12-month delivery window frames the near-term implementation timeline. The company indicated the transaction is a multimillion-dollar award, but did not disclose specific contract value in the announcement.
Context and next steps
Gilat will proceed with staged deliveries for the SkyEdge IV hardware and associated systems over the coming year. The deployment is expected to enable Nelco to operate Ka-band HTS services on GSAT-N2 across its intended market segments.
Additional operational details, including integration milestones and commercial launch timing for services run on the GSAT-N2 satellite, were not provided in the announcement.