"Payment of Network Usage Fees Required for Sustainable Growth of Internet Ecosystem"

Mobile360 Asia Pacific Conference Held
"Korean Content Growth Thanks to 5G... Networks Are Not Free"

"For the internet ecosystem to continue growing sustainably, those who benefit from the infrastructure or contribute investment resources must bear a fair share of the burden."

Lee Sang-hak, Vice Chairman of the Korea Telecommunications Operators Association (KTOA), stated this on the 7th at the 'Mobile360 Asia Pacific (M360 APAC)' conference held at the Westin Chosun Hotel in Jung-gu, Seoul, warning that if global major information technology companies (Big Tech) continue to refuse to pay network usage fees, a tragedy of the commons could occur.

Participants of the 'Securing Fair Revenue in a Challenging Business Environment' session at the 'Mobile360 Asia Pacific (M360 APAC)' conference are discussing network usage fees.
[Photo by Oh Suyeon]

Vice Chairman Lee said, "Per capita internet data usage has increased 15-fold compared to 10 years ago, and internet traffic is expected to quadruple by 2028," adding, "The only way to manage this is to ensure fair contribution and sharing from Big Tech."

He pointed out, "Among stakeholders in the Korean information and communication technology (ICT) ecosystem, there are two agreements: the ecosystem must be sustainable, and all users must pay their fair share," but noted, "However, a small number of global content providers (CPs) are avoiding responsibility." He also added, "Network usage fees should be paid by anyone who uses the network," and "While this may vary depending on each country's market conditions and development level, the main goal remains the same."

Dr. Roslyn Layton, a telecommunications and broadcasting policy expert, also agreed that CPs should contribute a certain portion to telecommunications infrastructure to ensure continuous market growth. Dr. Layton said, "The Korean content market is changing due to 5G. It has risen to become one of the world's top seven content powerhouses and grows by 5% annually," adding, "To maintain this growth trend, all stakeholders must participate."

She also introduced the 'Universal Service Fund' actively promoted in the United States. This fund requires contributions to provide universal internet service to residents in suburban areas without high-speed internet infrastructure. Dr. Layton explained, "In Korea, stakeholders resolve this directly, whereas in the U.S., the Federal Communications Commission (FCC) collects the fund and distributes it according to priority," adding, "There may not be consensus on which method is fair, but one thing is clear: network costs are not free."

Ryse F?r, Secretary-General of the European Telecommunications Network Operators' Association (ETNO), stated, "It is fair and important that the party causing the traffic contributes proportionally," and added, "The European Commission will introduce new legislation related to this." Europe is pushing for the enactment of the so-called 'Gigabit Connectivity Act' to make Big Tech share network investment costs.

Professor Shin Min-su of Hanyang University noted that although each country’s situation and solutions differ, it is difficult to resolve the issue by individual national operators alone, so global solidarity is necessary. Professor Shin said, "Korea is likely to propose new laws and industrial models related to network investment," but added, "Considering market size and influence, it will be difficult for Korean telecom companies to push this forward alone." He continued, "What is important is how to build solidarity with operators from other countries and connect policy responses," emphasizing, "There is a need to create policy discussion opportunities together with organizations such as the Global System for Mobile Communications Association (GSMA) and ETNO."

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