Gilat Satellite Networks Ltd. (NASDAQ: GILT) has announced today that it has received a three-year managed service contract for cellular backhaul by Southern Linc. After this contract, Southern Linc, a wholly-owned subsidiary of Southern Company (NYSE: SO) will utilize satellite transmission for backhaul services provided by Gilat. Gilat has fulfilled the strict requirements of Southern Linc. Including enabling MPLS traffic, integrated with cellular 4G with GTP acceleration. It’s a major technological innovation in satellite transformation.
Gilat Satellite has the ability to provide satellite installations services which will use to extend the cellular coverage for voice and high-speed data services in remote areas and in those areas where there is a difficulty due to bad weather.
This company will also offer backup services for terrestrial aggregation areas and an underlining level of monitoring and help for the large-scale LTE network of Southern Linc.
Gilat Satellite Networks Ltd. (NASDAQ: GILT) shares were trading up 0.38% at $5.32 during the trading session of Friday. Gilat Satellite Networks Ltd. (GILT) share price went from a low point around $4.70 to briefly over $10.76 in the past 52 weeks, though shares have since pulled back to $5.32.
It has moved up 13.19% from its 52-weeks low and moved down -50.56% from its 52-weeks high. GILT market cap has remained high, hitting $288.61 million at the time of writing.
Gilat Satellite is the only vendor who met all the strict requirements of Southern Linc including the requirements for MPLS support. It will offer transparent and simplified accelerated backhauling over satellite and enterprise and 4G cellular traffic over MPLS.
This is the main reason the Communication Equipment company has been awarded the backhauling services contract. Through this contract, Gilat also enhanced the service reliability of Southern Linc and most importantly its coverage in remote areas.
Previously, Gilat Satellite has ended the merger agreement with Comtech Telecommunications Corp first revealed on January 29, 2020, and has sorted out all unresolved cases in the Delaware Court of Chancery. In connection with the termination and settlement agreement, Comtech will make a payment of $70.0 million to Gilat.