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Korea-EU Telecom Joint Statement: "Big Tech Must Share Network Investment Costs"

The Korea Telecommunications Operators Association (KTOA) announced on the 31st that it, along with the European Telecommunications Network Operators' Association (ETNO), issued a joint statement demanding that big tech companies share the costs of network investment and urging the establishment of policies to this end.


Both associations urged, "Big tech companies, which account for more than half of global internet traffic, must actively engage in fair and proportional sharing to maintain and evolve the networks that form the foundation of the public internet."

Korea-EU Telecom Joint Statement: "Big Tech Must Share Network Investment Costs" [Image source=Pixabay]

Europe has long criticized the serious issue of big tech companies generating massive traffic while avoiding the burden of network investment. In June, the European Parliament adopted a resolution demanding that content providers generating large-scale traffic contribute to network investment costs. The European Parliament is currently discussing the so-called 'Gigabit Connectivity Act.' Korean telecom operators have raised concerns that the internet ecosystem, which has enabled the construction of world-class infrastructure, is at risk of collapse due to big tech companies' free-riding.


The demand for fair sharing of infrastructure investment costs is not limited to Korea and Europe. Voices calling for big tech to share network investment costs are growing in India, Australia, Brazil, and the United States, which can be considered the home of big tech.


Furthermore, both associations pointed out that there is serious intentional distortion regarding Korea's information and communication technology (ICT) situation during the debate over big tech's network investment sharing. Claims have been made that Koreans have low usage rates of content and online services or that innovative online businesses are lacking; however, Korea boasts world-class telecommunications infrastructure, including 5G and fiber-to-the-home (FTTH) penetration rates.


The two associations stated, "We must avoid the tragedy of the commons in the internet ecosystem and ensure that all users can enjoy the benefits of digital innovation," and added, "We urge policymakers in each country to establish reasonable policies so that big tech pays a fair price for the development of networks that enable internet connectivity."


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