Conflicts between content providers (CPs) and internet service providers (ISPs) are deepening over the payment of Internet network usage fees.
Conflicts between content providers (CPs) and internet service providers (ISPs) are deepening over the payment of Internet network usage fees. Domestic ISPs and large global CPs such as Youtube and Netflix are sharply at odds over the payment of network usage fees. The CPs argue that the demand for payment of usage fees is the harmful effect of monopoly of network operators, while the ISPs argue that paying usage fees is just a basic principle of the free market economy.
In other words, the problem is that the two sides have different opinions on how to share the cost of using Internet networks.
The controversial bill is a partial amendment to the Telecommunications Business Act. The problem started when the Korean government decided to revise the Telecommunications Business Act. The revision of the act is aimed at imposing obligations on network users, but it has not been decided how to implement it yet.
"If the law is revised, YouTube may have to consider a difficult decision to change the way it operates in Korea," said Gutham Anand, vice president of YouTube Asia-Pacific, in a post on YouTube's official blog.
"Network fees are not fair in that they penalize content platforms and domestic creators, allowing only Internet service providers to benefit," said Annand. "Additional costs will consequently penalize companies that provide content and creators who live with those companies."
In addition, he introduced the petition by OpenNet Korea, and asked, "If you are concerned about the bill related to network usage fees, please speak out together through signature."
Choi Sung-jin, CEO of the Korea Startup Forum, who represented the content industry, said, "I agree with the purpose of imposing obligations on network users, but there are concerns that this could negatively affect the market, such as weakening CP startups' bargaining power in the long run."
Currently, a total of seven bills related to network usage fees have been proposed at the National Assembly, including the Netflix Free Ride Prevention Act proposed by Yoon Young-chan, a lawmaker of the Democratic Party of Korea, on the 8th.
On the 20th, the National Assembly's Science and Technology Information and Communications Commission held a public hearing on the theme of 'network use price' and started a legislative discussion.
The story that is already over is starting again in Korea.