Spacenet Inc., a company specializing in managed network and data security services, has recently won a five-year base contract by one of the world's leading delivery service organizations to upgrade and offer network connectivity to more than 5,700 locations.

Headquartered in McLean, Virginia, Spacenet is a wholly-owned subsidiary of Gilat Satellite Networks (News - Alert) Ltd. Some of the prominent retailers of the country rely on Spacenet for the management and communications optimization of their networks. These retailers have stores all across the country and they use a wide range of technologies, such as broadband, wired and wireless.

Spacenet has now won the new contract, which includes an option to extend the five-year base period of performance for three further periods of three years for a total potential contract period of 14 years.  

The agreement is said to be worth around $20 million.

"For more than a decade, Spacenet has provided a variety of managed network services to this organization," said Spacenet President and CEO, Glenn Katz (News - Alert).

Katz further said that their knowledge and experience with satellite-based services long enabled their client to provide high-speed connectivity at locations out of reach of terrestrial networks. And now, like many organizations having geographically disparate locations, this organization is embracing the expansion of cost-effective broadband options all across the country, and has selected Spacenet as one of its vendors to achieve its goals.

“Our broad portfolio of network offerings, industry relationships and technology-neutral approach enables Spacenet to offer optimal solutions on a site-by-site basis," Katz concluded.

Spacenet was selected by the delivery service organization with the intention to cut on overall operating costs, and at the same time improve the user experience at each location.

The contract also mentions that Spacenet will serve more than 1,900 sites with broadband connectivity and more than 3,800 sites with satellite-based VSAT technology.