FITEL is Peru's national telecommunications investment fund, which uses a percentage of the revenues of the country's telecommunications companies to develop communications systems in rural regions. FITEL is a department of the Peruvian national telecommunications agency OSIPTEL.

The contract is the third awarded by FITEL to Gilat over the past year, representing the provision of rural satellite telephony service to more than 6,000 communities throughout Peru.

When completed, Peru's satellite telephony network will be one of the world's largest. Deployment of the new 1,300-site network, based on Gilat's DialAw@y IP VSAT product, has begun and is scheduled to reach completion by the end of 2002.

Rocio Del Campo, Gilat's General Manager in Peru, said, "Gilat's technology and services have proven to be a perfect fit for FITEL's rural telephony expansion program.

All prior stages of this program have been implemented successfully and we look forward to helping FITEL to eventually serve millions of citizens nationwide with reliable telephony and Internet service."

Gilat Latin America Chief Executive Officer Giora (Gigi) Oron said, "This new agreement with FITEL is the latest example of Gilat's ability to bring dependable, economical telephony and high-speed Internet service to citizens worldwide - even in the most remote regions. We expect to continue working with FITEL, and other prominent agencies, to maintain our reputation for innovation and service throughout Latin America."

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