Attendance at the Democratic Party Big Tech Abuse Countermeasure TF Meeting
Telecom Companies "Global CP Traffic Increased 28 Times in 10 Years"
TF Team Leader Han Junho "Law on Fees for Using 6 Networks, Alternative Bill Prepared"
Park Hong-geun, the floor leader of the Democratic Party of Korea, is speaking at the on-site visit meeting held on the 12th at KT Mokdong IDC 2 Center in Mokdong, Yangcheon-gu, Seoul, titled "Seeking Measures to Eradicate Free Riding on Networks by Global Content Companies such as Google and Netflix." Photo by the National Assembly Press Photographers.
[Asia Economy Reporter Cha Min-young] Domestic telecommunications companies met with the Democratic Party of Korea's recently launched 'Big Tech Abuse Countermeasure Task Force (TF)' to emphasize the need for legal amendments regarding the issue of "free riding" on network usage fees by big tech companies such as Google and Netflix, calling it a "tilted playing field."
The Big Tech Abuse Countermeasure TF under the Democratic Party's Livelihood Priority Implementation Group, led by Park Hong-geun, visited the Mokdong KT Internet Data Center (IDC) at 2 p.m. on the 12th.
After touring key facilities of the KT IDC, the TF received a briefing on traffic-related status. They then listened to the three major telecom companies (KT, SK Broadband, LG Uplus) regarding issues caused by traffic from global content providers like Google and Netflix and the necessity of paying network usage fees.
At the meeting, Seo Chang-seok, Head of KT Network Division, emphasized, “Traffic from global CPs such as Google and Netflix has increased 28 times over the past 10 years and accounts for 55% of KT’s traffic this year, yet they do not pay any network usage fees. ISPs are required to provide users with uniform and stable internet quality, so they must constantly manage traffic variability.”
Cho Young-hoon, Vice President of SK Broadband, currently involved in litigation with Netflix over network usage fees, stated, “Domestic content providers like Naver and Kakao, as well as foreign CPs such as Facebook, Apple, and Disney, all pay network usage fees, but Google and Netflix alone refuse even to negotiate. Legal amendments are the only way to guarantee minimal bargaining power on this tilted playing field.”
Park Hyung-il, CRO of LG Uplus, also criticized, “Netflix and Google are known to pay network usage fees or similar charges to major telecom companies in many overseas countries including the US, France, Germany, and Australia within the EU. Not paying network usage fees only in Korea violates fairness among CPs and unfairly shifts responsibility solely onto domestic telecom companies.”
Park Hong-geun, head of the Democratic Party’s Livelihood Priority Implementation Group, expressed concern, saying, “There have been continuous criticisms that the network usage fees paid by foreign operators occupying over 60% of domestic mobile traffic are unreasonable, and the problem remains unresolved. Free riding will negatively impact in various ways, including discrimination among companies, reduced investment capacity, and cost burdens passed on to our citizens.”
He added, “A healthy internet ecosystem can only exist when fast and stable networks, diverse content, and users who pay fair fees coexist. We will strive to ensure that legislative efforts yield maximum results so that the ICT industry can achieve sustainable development while protecting users.”
Han Jun-ho, TF team leader, said during the Q&A after the meeting, “The most important issue is that all global platform companies worldwide pay network usage fees, but Netflix, despite losing the first lawsuit, refuses to acknowledge the legitimacy of network usage fees.” He added, “The bills are largely similar, but the Democratic Party is reviewing six bills and focusing on alternative legislation, planning to gather positions from the three companies and the government.” Currently, six amendments to the Telecommunications Business Act, which mandate payment obligations for global CPs’ network usage fees, are pending in the National Assembly.
Meanwhile, the on-site meeting was attended by Park Hong-geun, head of the Livelihood Priority Implementation Group, Han Jun-ho, team leader of the Big Tech Abuse Countermeasure TF, as well as lawmakers Ko Min-jung, Yoo Jung-joo, Yoon Young-chan, and Jung Pil-mo. Industry representatives included Seo Chang-seok, Head of KT Network Division, Cho Young-hoon, Vice President of SK Broadband, and Park Hyung-il, CRO of LG Uplus.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
