Korean telecom firms to invest US$ 15.8bn in IPTV this year

March 31, 2008 – Korean telecom firms will invest around KRW 1.57tr (US$ 15.8bn) in IPTV this year, according to the country’s Broadcasting and Communications Commission (BCC).

KT alone is expected to invest KRW 1.3tr in its IPTV service “Mega TV” this year, while LG Dacom will spend KRW 146.4bn on “myLGtv” and Hanarotelecom will invest KRW 122.1bn in “Hana TV”.  According to the report, a large part of the funds will be spent on expanding and improving Internet networks and purchasing TV content.

“By enriching the content of its Mega TV service, KT will endeavour to narrow the information gap between rich and poor people,” the telco commented.

According to the report, the firms will together spend KRW 1.06tr on improving networks, KRW 113.7bn on platforms, KRW 223bn on set-top boxes and KRW 180bn on purchasing content.  Korea’s Electronics and Telecommunications Research Institute estimates that the local IPTV market will be worth KRW 540bn this year, adding that it will take a few years before the firms make a profit.

Government agencies reportedly anticipate that IPTV subscribers will reach 2mn this year, and rise to 3.3mn by 2012.