"Unlawful Refusal to Pay Fair Compensation for Network Usage Must Be Eradicated"

'Discussion Meeting on Network Usage Fees for Global Debate'
7 Domestic Bills Pending... Active Discussions in EU, US, etc.

"The discussion on domestic network usage fees should prioritize eradicating the refusal by some content providers (CPs) to pay fair compensation for using the network, thereby restoring market order."

This opinion was expressed at the 'Expert Roundtable on Global Discussions of Network Usage Fees' held on the 12th by Yoon Young-chan, a member of the Democratic Party of Korea, at the National Assembly Members' Office Building.

[Image source=Pixabay]

Recently, as large global CPs such as Google and Netflix have increased their video streaming services, internet network traffic has surged worldwide. According to data from the Ministry of Science and ICT in Korea, mobile video traffic increased 4.3 times from the end of 2015 to June 2021. This has led to legal disputes between SK Broadband and Netflix. Since 2020, the National Assembly has proposed a total of seven partial amendments to the Telecommunications Business Act related to network usage fees, but these are still pending in the relevant standing committees.

At the roundtable, Professor Shin Min-su of Hanyang University presented on the topic "Policy Directions for Network Usage Fees, Focusing on Global Discussions." Professor Shin stated, "To handle the traffic generated by large CPs such as Over-The-Top (OTT) services, large-scale investment and efforts to provide stable services are necessary. If some big tech companies continue to free-ride on the network, the virtuous ecosystem among Internet Service Providers (ISPs), CPs, and users will collapse, leading to a long-term shortage of investment funds, which will shrink investments in network advancement and hinder the development of the ICT industry."

The conflict over network usage fees between CPs and ISPs is not unique to Korea. Although related discussions have stalled domestically, many countries around the world are moving forward with legislation.

The most active legislative efforts are taking place in the European Union (EU). To reduce infrastructure construction costs, the EU has proposed the 'Gigabit Infrastructure Act' and conducted a survey in February on the theme of 'The Future of Telecommunications and Infrastructure' to promote the enactment of the bill. Margrethe Vestager, Vice-President of the European Commission, and Thierry Breton, Commissioner, have repeatedly stated that big tech companies should fairly contribute to network investments. Professor Shin said, "The EU prioritizes securing investment funds necessary for network advancement, which has lagged behind other countries, through direct compensation or fund creation between CPs and telecom companies for the Digital Decade."

In the United States, three Republican senators introduced the 'Fair Contribution for Internet Act' in September 2021. The bill seeks ways for big tech companies to contribute to securing universal service to bridge the digital divide. Additionally, FCC Commissioner Brendan Carr stated last month that large CPs should contribute to investments to facilitate the extensive network construction required.

In Brazil, the telecommunications regulatory agency is collecting opinions on institutionalizing network usage fees until the end of this month. The Vietnamese government announced that it will propose additional regulations in the amendment of the Telecommunications Law to ensure telecom companies reinvest in technology development and protect consumer rights. Indian regulators are preparing a revenue-sharing mechanism between CPs and ISPs.

Professor Shin emphasized, "There is a need to establish policy measures for the revolutionary development of the information and communication industry and fair network usage." Regarding policy directions, he said, "Considering that contract terms and settlement methods between CPs and ISPs can vary, the autonomy of contracting parties should be guaranteed. However, to prepare for cases where negotiations fail due to power imbalances, it is necessary to consider legislative supplements that impose negotiation responsibilities on both CPs and ISPs to maintain balance." He also added, "Since both CPs and ISPs can be subjects of compliance in terms of protecting end users, policy efforts should focus on two goals: user protection and the sustainability of the network ecosystem."

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