Construction of the network, which will extend
about 13,400 kilometers (8,300 miles), will begin in early 2014
and will take about two years to complete, the statement said.
A Peruvian official said the government will spend up to $333.2
million on the project.
A spokesman for TV Azteca, however, said the project will cost
the government about $760 million over its 20 year life.
Carlos Paredes, Peru's transportation and communications
minister, said in a statement that the network will cut Internet
connection costs in the country by up to 80 percent.
TV Azteca, is controlled by billionaire businessman Ricardo
Salinas, is currently building a fiber optic network in
Colombia, the statement added.
TV Azteca and its main competitor, Televisa, together have a 95
percent share of Mexico's broadcast television market.
TV Azteca shares closed up 0.92 percent at 6.59 pesos per share
after the news.
The government earlier this year passed a sweeping overhaul of
the telecommunications industry that aims to bolster competition
in both the phone and TV markets.
(Reporting by Tomas Sarmiento and
Alexandra Alper in Mexico City, and Marco Aquino and Patricia
Velez in Lima; editing by Bernadette Baum and Ken Wills)
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