Mr. Kim In-kyu, Chairman of the Korean Digital Media Industry Association, has declared that the South Korean government plans to sign a US$ 1bn agreement with Peru by the end of this month.
This deal asserts that South Korea will provide its IPTV technology in exchange for Peruvian natural gas and will be signed by the Peruvian President, Alan Garcia when he visits the Republic of Korea this month.
Mr. Kim is confident that this agreement will increase IPTV demand, creating approximately 38,000 new jobs for the Republic of Korea by 2010.
Informa Telecoms & Media stated that Peru’s limited network system, which offers only low broadband connection and fixed-line access, may reduce the connection potential on a short term basis.
Spain’s Telefónica has lately been introducing IPTV in other Latin American countries and will soon be doing the same in Peru over a medium term.
The Peruvian government is also planning to open up the telecom infrastructures and intends to apply the new Law of Unique Licence.
This reduction in costs will encourage alternative operators to offer services such as IPTV.