Globecomm Systems Receives Initial Contract Valued at $2.5 Million in United Arab Emirates; Potential Total Contract Valued at Up to $7 Million
Globecomm Systems Inc.,
(Nasdaq: GCOM), a leading global supplier of end-to-end solutions for
satellite earth stations and networks, has been awarded an initial Access
Services Contract valued at $2.5 million to provide the satellite earth
terminal, Internet Access, and related satellite services for Dubai Internet
City (DIC) in the United Arab Emirates.
The contract also provides for
expansion of services valued at $4.5 million should DIC opt to exercise all
options. The services and equipment called for in the contract will be
provided through Globecomm`s wholly owned subsidiary, NetSat Express.
Under the contract, Globecomm Systems will install and commission a
satellite earth terminal which will complement two other satellite earth
terminals supplied by Globecomm Systems to DIC in October 2001 under a
previous contract for Quick Start Teleport Facility (QSTF). The QSTF enables
Dubai Internet City to offer the tenant companies the ability to broadcast
audio and video content regionally. The new Access Services Contract will
provide DIC`s tenant companies with Internet access through the Internet via
NetSat Express` satellite services.
“The installation of the satellite terminal equipment will enable Dubai
Internet City to offer reliable, affordable Internet access services which can
be upgraded in the future to accommodate other services,” said Globecomm
Chairman and CEO David Hershberg. “As a result of this contract, Globecomm
becomes a key service provider in the Dubai Internet City centre.”
Dubai Internet City is the first complete Information Technology and
Telecommunications centre in the world to have been built inside a free trade
zone. Dubai Internet City offers modern, ready-to-operate, fully serviced
office space catering to the specific needs of today`s New Economy companies.
These offices offer cutting edge technology and provide both wired and
Dubai Internet City allows 100% foreign ownership of companies and laws
relating to partnerships with local sponsors have been relaxed. Sales,
company earnings and private income are exempt from any form of taxation.
Companies can also take land on a renewable lease of up to 50 years and build
their own offices. Dubai Internet City`s infrastructure is second to none.
Dubai Internet City is the biggest IT-build in the Middle East, and has
the largest Internet Protocol telephony system in the world. Sets of
intellectual property and cyber regulations have been implemented to protect
the integrity of e-business. A dedicated government agency has been created
to ensure enforcement of these regulations.
Dubai Internet City has issued licenses to a host of global information
technology companies. Microsoft, Oracle, IBM, Hewlett-Packard, EDS, EMC,
GemPlus, Wipro, and Satyam, have already identified their long-term objectives
here. By establishing these roadmaps early, forward-thinking businesses are
working with the industry to facilitate and ensure the smooth integration of
Globecomm Systems provides end-to-end, value-added satellite-based
communications services, and satellite ground segment systems and networks,
which support a wide range of satellite communications applications. The
Company`s wholly owned NetSat Express subsidiary is a leader in providing end-
to-end satellite-based Internet solutions around the world. Currently, NetSat
Express offers start-up and expanding ISPs and other enterprises a wide range
of solutions, including Internet backbone connectivity, network applications,
back-office capabilities, POP infrastructure, Web hosting and network
management services. Both Globecomm Systems` and NetSat Express` customers
include communication service providers, multinational corporations, Internet
Service Providers, content providers and government entities.