Korean companies to build IPTV network in Peru

A group of Korean companies will provide expertise and technology to a Peruvian group building out an IPTV offering in and around the country's capital of Lima.

Efforts like this cooperation will be necessary to bring IPTV services to South and Latin America, where penetration has been slight at best. A report out this week from Pyramid Research suggests that regulation and lack of capital for infrastructure are two major hindrances to IPTV buildout in the region, but neither seems to be affecting this Korean/Peruvian joint venture.

The Korean Digital Media Association (KODIMA) reports that the Korean companies will receive mineral contracts for copper, zinc, and molybdenum valued at about $173 million for their aid in the project. The KODIMA said the amount could increase to $1 billion by 2012, if the initial expansion is successful. The first part of the project will install an optical network that is expected to pass 1 million households, coupled with an IPTV broadcast center.

"The contract marks the first occasion of Korea exporting IPTV technology which could be touted as a significant achievement of diplomatic efforts by Korean entrepreneurs to secure resources in Latin America," said Kim In-gyu, head of KODIMA.  "The technology will act as a driver in creating new jobs, thanks to a growing demand of contents creators fueled by penetration of IPTV services around the world."

Korea Telecom, a leading provider of IPTV services, is one of the Korean companies providing expertise.

For more:
- see the IPTV News article here
- see the Telecommunications Online summary of the Pyramid report here 

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