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The company said on Tuesday that it set up a task force last week to review an Internet protocol television (IPTV) unit. "The team will study the feasibility of the business, set out the direction and report the results to senior company officials," SK Telecom said.

SK Telecom has until now been resistant to entering the Internet-based broadcasting sector.

IPTV allows users to watch programming over a high-speed Internet connection. If SK Telecom wants to make inroads into the IPTV market, it would need to acquire or merge with an Internet provider.

Hanaro Telecom, which operates its own Internet TV business Hana TV, and other operators equipped with cable Internet networks are possible targets for M&A.

Hana TV, which launched in July last year, has signed up 540,000 subscribers as of the end of June.

Korea Telecom earlier this month began airing HD programming on its Internet TV service Mega TV. LG Dacom plans to launch an Internet TV service in September.