GVT will offer IPTV in Brazil in 2011
The CLEC from the Central South area of Brazil, which is currently controlled by the French Vivendi, will offer IPTV in 2011. Sources of the company explained to NexTV Latam that Bill 29 approval, which will enable companies that do not have a national capital majority to be granted IPTV licenses, might be put off given the presidential elections to be held in 2010 in such country. In July 2008, the company chose two providers (Cisco and Ericsson) and is now waiting for Bill 29 approval in order to start its final IPTV trials.
GVT offers fixed telephony, Internet and last year, started to render TV services jointly with the DTH operator, Sky. In 2009 GVT's earnings amounted to USD 105,2 millions, five times as much if compared to figures recorded in 2008. The company's revenues amounted to USD 902,5 millions, which account for a 28.7% increase if compared with the previous year. 2009 investments amounted to a total of USD 350,9 millions, that is, an 8.8% decrease if compared with 2008 investments.
"We believe that it is important to have Bill 29 passed this year, the democratization of Pay-TV services in the country might generate a new wave of investments", a CVT executive assured. The Brazilian company accepted a credit line of € 250 millions granted by Vivendi. Such resources will be assigned to the company's expansion plan financing.