Discussion on Network Access Fees at 'MWC 2022'... Will a Basis Be Established?

[Asia Economy Reporter Lim Hye-sun] This year in Barcelona, Internet Service Providers (ISPs) from around the world will discuss the issue of payment for network usage fees to Content Providers (CPs) such as Netflix.

At the world's largest mobile exhibition, 'Mobile World Congress (MWC 2022)', held over four days starting on the 28th (local time), the Global System for Mobile Communications Association (GSMA) will hold ministerial-level talks on funding for digital transformation. In the session held on the 1st (local time), attendees include Sunil Bharti Mittal, Chairman of Indian telecom company Bharti Airtel, and Dennis O'Brien, Chairman of Digicel Group. Network usage fees are expected to be mentioned as a means to secure investment funds. In October last year, GSMA formed a task force (TF) after reaching a consensus that content providers should contribute to maintaining network stability. The results will be disclosed on this day, and GSMA is expected to demand that global content providers 'pay network usage fees.' GSMA estimated that telecom operators will need to invest $900 billion in networks by 2025 to meet the demand for ultra-high-speed internet.

Until now, there has been no precedent for paying network usage fees, so telecom operators have not voiced strong demands. Domestic telecom operators expect that 'MWC 2022' will provide grounds to demand network usage fee payments from content providers. Recently, among global companies, there has been increasing advocacy that content providers should bear part of the network development costs. The four major European telecom companies?Vodafone (UK), Telef?nica (Spain), Deutsche Telekom (Germany), and Orange (France)?submitted a joint statement to the European Union (EU) Parliament on the 14th, requesting the establishment of rules for shared network development costs by big tech companies. Domestically, SK Broadband has been engaged in legal battles with Netflix over network usage fee payments since last year.

Representatives of the three major domestic mobile carriers are expected to voice their opinions directly or indirectly. KT CEO Koo Hyun-mo, a GSMA board member, will attend committee meetings, and SK Telecom CEO Yoo Young-sang and LG Uplus CEO Hwang Hyun-sik will also participate in various meetings.

This content was produced with the assistance of AI translation services.