"Second Network Usage Fee Dispute Likely to Arise Again... Must Continue Discussions in the 22nd National Assembly"

"AI·IoT Traffic Surges... The Future Is Crucial"
"Twitch Withdrawal Is Not Just About Network Usage Fees"

As Netflix and SK Broadband reconciled after three years, bringing an end to the lawsuit over network usage fees, opinions emerged that continuous discussions are necessary. This is because conflicts over network operation costs are highly likely to resurface amid the expected surge in traffic due to the spread of artificial intelligence (AI).

On the 8th, Professor Choi Kyung-jin of Gachon University’s Department of Law stated at the '1st Telecommunications Industry and Service Study Day' hosted by the Korea Telecommunications Operators Association (KTOA), "The issue of network usage fees is not unique to Korea but a global matter."

Professor Choi Kyung-jin of Gachon University Law School is explaining "Overview of the Telecommunications Business Act and Desirable Directions for Its Reform" at the "1st Telecommunications Industry and Service Study Day" hosted by the Korea Telecommunications Operators Association (KTOA) on the 8th.

Professor Choi said, "The issue of network usage fees will become more important in the future," adding, "As we move into the era of AI and the Internet of Things (IoT), more data is collected and traffic increases. A network is necessary for this traffic to be distributed."

Korea was the first country in the world to initiate discussions related to network usage fees. When SKB demanded payment, citing a surge in transmission costs due to increased Netflix traffic, Netflix filed a declaratory judgment lawsuit in April 2020 to confirm non-existence of debt. Subsequently, in June 2021, the court ruled in favor of SKB in the first trial. Netflix appealed, and SKB filed a counterclaim, continuing the legal battle. Following Korea, countries such as the United States, the European Union (EU), India, and Vietnam also engaged in discussions over sharing network investment costs. Then, in September, the two companies suddenly signed a partnership and mutually withdrew the lawsuits. During this period, not only the companies but also political circles actively gathered opinions by proposing bills related to network usage fees and holding public hearings; however, momentum was lost after the agreement between the two companies.

Professor Choi emphasized that discussions on network usage fees should not end with agreements between individual companies. He said, "Ultimately, the fundamental question of who will bear the costs of network installation, management, and operation will inevitably return," adding, "The first trial and appeal proceeded, and I think it would have been better if it had gone all the way." He also stated, "Even if not to the extent of legal provisions, discussions on network usage fees should continue in the 22nd National Assembly," and "There have been intense discussions over the past two to three years, and if they stop now, the discussions will have to start over. Even if not too heated, it is necessary to maintain interest and build social consensus."

Recently, Twitch announced plans to withdraw from the Korean market, citing the heavy burden of network usage fees as making it difficult to continue operations, bringing renewed attention to the network usage fee debate. However, Professor Choi cautioned against interpreting Twitch’s withdrawal solely as a network usage fee issue. He said, "Twitch’s issues are not only about network usage fees but also involve internal management problems, Korean contracts, representative issues, and various other factors."