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World Markets Analysis

June 21, 2005

The vice-president of the Communications and Transport Ministry in Peru, Juan Pacheco, has announced that DirecTV has requested a concession licence to operate as a cable TV operator in the country, according to local newspaper Gestion.

Significance: The new development is part of DirecTV's expansion plan in Latin America, since the cable operator already has operations in Argentina, Brazil, Chile, Colombia, Puerto Rico, Uruguay and Venezuela.

In the Peruvian cable TV market, DirecTV will be facing strong competition from Cable Magico, which has 88.5% of the cable TV market, according to Peruvian telecoms regulator Osiptel. In December 2004, Cable Magico had 328,674 subscribers, and is owned by Telefonica del Peru, which can bundle its services and offer them at a lower price. DirecTV aims to offer voice, broadband and cable TV services in Peru.