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Telefônica invests R$ 500mn in broadband network in Brazil as preparations for IPTV continue |
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October 3, 2007 – Telefônica is investing R$ 500mn (US$ 272.85mn) this year in improvements to its broadband network in Brazil to increase coverage and capacity, which will in turn facilitate the deployment of an IPTV service in the country.
The President of the Brazilian subsidiary of the Telefónica Group, Antônio Carlos Valente, told local newspaper O Estado de São Paulo that by the end of the year, “90% of the network will have at least 1 Mbps”, adding that “we believe very much in IPTV, but will not implement it in the next few months. There are still technical and regulatory issues to be resolved.”
At present only 13% of Telefônica’s broadband network offers speeds of 1 Mbps or more. The telco’s Director of Business Development, Gilberto Sotto Mayor, added that with current technology, a broadband connection of between 2 and 2.5 Mbps is required to transmit IPTV in standard definition, however with new encoders this will fall to 1 Mbps to 1.5 Mbps. In Spain, Telefónica’s Imagenio IPTV service has now reached 450,000 subscribers.
Brasil Telecom commercially launched an IPTV VOD service in Brasilia last week. Due to current regulation in Brazil telcos cannot offer broadcast channels over IPTV, but only VOD.
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