KTOA: "Network Usage Fees Are Not a Violation of Network Neutrality"... Ongoing Dispute

KTOA Meeting: OpenNet Faces Rebuttal Again
"Internet Is a Two-Sided Market... Google Must State Its Position Directly"

On the 28th, a YouTube advertisement by Google, which has recently been generating public opposition to the Network Usage Fee Act, was displayed at a large shopping mall in Yeouido, Seoul, and the subway connecting passage. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Oh Su-yeon] The battle over network usage fees is intense. Internet Service Providers (ISPs) and Content Providers (CPs) are sharply opposing each other's claims. The Korea Telecommunications Operators Association (KTOA) has stated that network usage fees do not violate net neutrality and urged Google, the party involved, to take direct action.

On the 14th, KTOA issued a rebuttal to OpenNet's claims made the previous day, stating that "Internet access is a two-sided market" and "network usage fees do not violate net neutrality."

KTOA said, "At the press briefing on the 12th, we presented domestic and international court precedents, legal systems, and the Korea-US Free Trade Agreement (FTA) to prove that internet access is a two-sided market. Furthermore, court precedents have proven that there is no violation of net neutrality," adding, "During the civil trial between Netflix and SK Broadband on the 12th, Michael Smith, a witness for Netflix, officially acknowledged that Netflix has paid network usage fees to US ISPs such as Comcast, AT&T, and Verizon."

They argued, "If internet access were not a two-sided market, how could US ISPs have received network usage fees from Netflix, a CP?" and "Even in the statement Netflix submitted to the US Federal Communications Commission (FCC) during the Charter merger, it mentioned paying network usage fees to ISPs, but it never claimed this violated net neutrality."

They continued, "When Netflix paid network usage fees to domestic ISPs like Comcast, AT&T, and Verizon, it was under peering agreements," adding, "In other words, the contract with Comcast was solely to deliver Netflix's content to Comcast subscribers. This is the same situation as Netflix and Google currently connecting to domestic ISPs."

Quoting FCC licensing conditions and the US court's Charter ruling, they stated, "Both the FCC and US courts recognize ISPs charging CPs network usage fees, thereby acknowledging the two-sided market," and "Moreover, the FCC has never ruled that charging CPs network usage fees constitutes a violation of net neutrality."

They also said, "As stated at the press briefing, the direct stakeholder of the bill is Google. We once again urge Google to clearly state the reasons for opposing the bill."

Earlier, on the 12th, KTOA held a press briefing titled "Is it okay for global big tech to ride the network for free?" together with the three telecom companies KT, LG Uplus, and SK Broadband. Participants argued that demands for network usage fees do not violate net neutrality, that there are overseas payment cases, and countered CPs' claims by stating that the network usage fees Google should pay amount to only 0.17?0.25% of video advertising revenue.

The next day, OpenNet released a press release titled "Fact Check on KTOA and the Three Telecom Companies' Press Briefing? The Facts Are Like This," countering the claims of KTOA and the telecom companies.

OpenNet argued that many countries, including the US, prohibit telecom companies from charging transmission fees to data senders, that the network usage fee-related bills pending in the National Assembly legally stipulate the obligation to pay network usage fees, and that if the bills are introduced, the burden will be passed on to CPs as in past data metering cases. They also pointed out that KTOA misquoted academic papers in their explanation.

The network usage fee issue began with the conflict between Netflix and SK Broadband. The second trial is currently underway. The National Assembly has proposed seven related bills and accelerated legislation, but recently, the process has stalled as 250,000 citizens participated in a petition opposing network usage fee legislation. Google YouTube is encouraging participation in the petition against the network usage fee bill, and Twitch is lowering video quality citing increased operating costs in Korea, intensifying public opinion battles and conflicts with ISPs. Statements regarding network usage fees are also pouring out during the National Assembly's audit sessions.

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