Legislative Clock Ticking on 'Network Usage Fees' Around the World

EU Commission to Hold Weekly Public Talks with Big Tech and Telecoms
Key Topic at MWC Keynote
South Korean Science and ICT Committee Members Visit Google Headquarters

[Image source=Pixabay]

[Asia Economy Reporter Oh Su-yeon] Governments around the world, centered on Europe, have begun full-scale legislative work on network usage fees. The legislation on network usage fees refers to enacting laws that require telecommunications companies to charge content providers (CPs) that use a large amount of traffic higher network usage fees.

Major foreign media reported that the European Union (EU) Executive Commission plans to inquire big tech companies and telecom operators about their infrastructure investment status, future plans, and plans for transitioning to cloud infrastructure.

The Commission has already prepared a substantial questionnaire and will begin formal public consultations starting next week. It also plans to review network regulations in other regions such as South Korea and Australia.

The EU is currently working on the legislation of the "Connectivity Infrastructure Act" to ensure that global big tech companies contribute to network investments. This inquiry aims to secure foundational data that will serve as the basis for drafting the bill. It is expected to take about 12 weeks to draft the initial version of the bill thereafter.

Major European telecom operators such as Deutsche Telekom, Orange, and Telef?nica demand that the six largest CPs, which account for more than half of total internet traffic, fairly contribute to investment costs. Big tech companies like Google, Netflix, Meta, and Amazon counter that such demands from telecom companies are a kind of traffic tax that could weaken the principle of net neutrality.

This issue is not limited to Europe. The Cellular Operators Association of India (COAI) urged online video service (OTT) providers last November to pay for the costs imposed on networks.

At the Mobile World Congress (MWC), the world's largest mobile telecommunications exhibition held in February, discussions related to network usage fees are also expected to be active. The theme of the opening keynote speech at MWC is "A Vision for a Fair Future," emphasizing that those who use the network more should pay more.

The GSMA Board, the organizer of MWC, agreed last February at MWC that big tech should contribute to infrastructure investment costs. Having held several meetings, interviews, and issued statements last year, more concrete measures are expected to emerge at this year's MWC.

Legislative progress on network usage fees is also anticipated domestically. On the 9th (local time), lawmakers Park Sung-joong, Cho Seung-rae, and Yoon Young-chan from the National Assembly's Science, Technology, Broadcasting and Communications Committee visited Google's headquarters in Silicon Valley, USA, to hear Google's stance on network usage fees and other current issues.

Currently, seven amendments to the Telecommunications Business Act, including provisions related to network usage fee contracts, are pending in the National Assembly. A consensus was formed between ruling and opposition parties in the first half of last year, and the first public hearing for legislation was held in September. However, subsequent discussions stalled due to Google launching a public relations campaign using YouTubers and conflicts between ruling and opposition parties.

The telecommunications industry expects that legislative efforts on network usage fees in Korea will gain momentum, spurred by global operators' legislative movements and the MWC.

An industry official said, "Lawmakers, including the ruling and opposition party coordinators of the Science, Technology, Broadcasting and Communications Committee, personally visited Google's headquarters in the US to confirm their stance and seek resolution," adding, "If big tech does not show efforts to resolve the network usage fee issue afterward, it could provide justification for legislation."