US communications company Comtech Telecommunications entered into a definitive agreement to sell the bulk of its satellite and space operations to Israeli company Gilat Satellite Networks in a $157.5 million deal.

Under the agreement, Gilat will pay $10 million of the sum up front, taking control of Comtech’s ground infrastructure systems, large antennas, modems, communications equipment, and network control and management systems for different types of satellites including low Earth orbit (LEO) offerings.

The deal is a significant about-turn for Gilat, which agreed to be bought by Comtech for around $580 million in 2020 in a deal which ultimately collapsed.

Gilat specialises in creating equipment for satellite communications including stations, modems, amplifiers and antennas.

The acquisition is expected to beef up Gilat’s presence in the defence market since Comtech is a big supplier for the US military.

Gilat CEO Adi Sfadia said it was impressed with the successful progress of Comtech and the segment is an “excellent strategic fit”.

Comtech will retain some cybersecurity assets and rights to certain accounts in line with a shift towards public safety operations being driven by its Allerium business unit.

“The sale of most of the satellite and space segment, together with the agreements we have reached with our lenders and preferred stockholders, represent a significant milestone in Comtech’s transformation and reflect the successful execution of our strategy,” CEO Ken Traub said.

The deal requires regulatory approval and is expected to close by the end of the year.

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Senior figures from UK operators Virgin Media O2 and VodafoneThree voiced confidence premium network offerings based on standalone (SA) 5G could become a solid revenue source, during sessions at a circus-themed Ericsson event.

The vendor’s tech showcase was held in central London in a building which also houses the UK’s National Centre for Circus Arts, with performers appearing in the breaks of the main programme.

It brought together operators, enterprises, partners and representatives from UK authorities to discuss the benefits of cutting-edge 5G technology and progress of network rollouts. It acted as a follow-up to a music-themed event in 2025.

Juggling networks
VodafoneThree CNO and network director Andrea Dona (pictured, below) highlighted early progress integrating assets previously held by the Vodafone and 3 UK brands following a merger just over a year ago.

Describing the deal as “a really important one for the country,” the network guru reiterated an argument frequently voiced while the deal was going through the approvals process: it would boost network investment by the combined entity and rivals.

Highlighting a “really fast start” in the process of merging the two networks and employing respective spectrum assets, he added recent benchmark statistics showed peers “have not stood still, they’ve also invested. Everyone feels the pressure to do more and give the UK a better network”.

“There’s still a lot of work to do but I think in some areas we are ahead [of target],” Dona added. “The scene is set for an amazing journey”.

VodafoneThree describes its ambition with SA 5G as to build the “UK’s first nationwide AI-ready network”.

Dona explained the connection to AI was due to SA 5G’s bandwidth and latency being able to support compatible applications, as well as the benefits the technology can bring to the network architecture itself including use in and on the RAN.

“The network we’re building is going to be an exceptional network,” he asserted, pointing to the benefits of slicing in stadia as an example.

“If you want a privileged lane to do your upload and you’re willing to pay,” then you can, he said, adding operators can monetise the network through “quality on demand” offers.

“We need to ensure in a situation with congestion, when a resource is not readily available, we can make it available if you pay for additional quality, additional performance and additional services”.

Selling premium versions of services “happens in every industry”, he said.

Singing in harmony
During a separate session, Virgin Media O2 director of strategy, transformation and planning Anita Tadayon (pictured, below) said she also believes there is an appetite for services based on network slicing on SA 5G, but called for an industry-wide effort to get the message across on what the technology can do.

“Articulating the benefits of slicing for a customer is really important and collectively, as an industry, we have to do that together. We’ve got to sing from the same hymn sheet,” she noted, adding if there’s value “then the customer will pay”.

Speaking broadly on SA 5G, she highlighted a strong push on rolling out the technology at VMO2.

Its network now covers 700 towns and cities, and Tadayon explained the technology benefits all customers whether they have a compatible handset or not.

“I know we talk about monetisation, but look at what it also does for our customers.”

“Absolutely, there’s new innovation and use cases, but it also delivers all of our customers a benefit on coverage, capacity, speed, everything”.

Away from the latest iteration of 5G, she highlighted the operator’s work in providing direct-to-device satellite connectivity to users in remote areas through a deal with Starlink and a push to introduce greater autonomy in its network.

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SpaceX reportedly leased the full capacity of its Colossus 1 data centre to Anthropic after running into technical problems using the site for its own Grok AI workloads.

Bloomberg reported last week (12 June) the company planned to use Colossus 1, located in the US state of Tennessee, as part of a three-campus cluster to train its more advanced AI models, but latency issues emerged when the facility was linked with two other sites more than 10 miles away

Sources told the news site the problems were said to be worsened by older network infrastructure.

Bloomberg noted high-performance AI training depends on fast, low-latency links between compute sites, but bottlenecks can slow the wider cluster.

Rather than continue trying to resolve those constraints, SpaceX decided leasing the site to third parties would generate greater value and create an additional revenue stream.

The move comes as SpaceX pushes its data centre expansion as a key plank of its investor story following its acquisition of xAI earlier this year.

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