{"id":2200451,"date":"2023-03-21T08:00:06","date_gmt":"2023-03-20T23:00:06","guid":{"rendered":"https:\/\/koreapro.org\/?p=2200451"},"modified":"2023-04-05T16:07:53","modified_gmt":"2023-04-05T07:07:53","slug":"four-out-of-10-south-koreans-oppose-proposed-network-usage-fee-legislation","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/03\/four-out-of-10-south-koreans-oppose-proposed-network-usage-fee-legislation\/","title":{"rendered":"Four out of 10 South Koreans oppose proposed network usage fee legislation"},"content":{"rendered":"
A <\/span>survey<\/span><\/a> conducted by Open Network, a non-governmental organization, found that four out of 10 South Koreans do not support the mandatory network usage fee legislation that the National Assembly is mulling. Several National Assembly members last year proposed an amendment to the Telecommunications Business Act to detail content providers\u2019 obligations to pay for using Korean networks to deliver their content to local users. The network fee issue stems from the 2016 revision of the <\/span>Interconnection Standards for Telecommunication Facilities<\/span><\/a> law, which required the country\u2019s three major internet service providers (ISPs) \u2014 SK Broadband, KT and LG U+ \u2014 to <\/span>pay additional fees<\/span><\/a> to send data to one another.<\/span><\/p>\n 43.7% of respondents opposed the proposed law, while 30.1% supported it. 26.1% of respondents answered with \u201cI don\u2019t know\u201d when asked about the proposed law. 62.9% of respondents believe that ISPs will pass on the fees to consumers. However, 51.6% of respondents agreed that it was unfair that foreign content providers, such as Netflix and Google, have not paid network usage fees.<\/span><\/p>\n Why It Matters<\/b><\/p>\n Twitch, a U.S. streaming service run by Amazon, <\/span>reduced<\/span><\/a> the maximum quality of its videos to 720p in Korea in September and blocked Korean users from viewing video-on-demand (VOD) content in December. In February, it blocked the uploading of VOD content from Korea. Although Twitch has denied that its decisions are not due to network usage fees, it highlights a growing battle over <\/span>network usage fees<\/span><\/a> that could reshape the country\u2019s internet landscape.<\/span><\/p>\n Network usage fees do not exist in any other advanced economy. Local content providers such as <\/span>Naver and Kakao<\/span><\/a> have had to abide by the 2016 law change and pay network usage fees to help cover the cost of internet traffic, which increased during the pandemic. However, Google, Netflix and Facebook, which account for a significant portion of data usage, have not paid network usage fees. Local companies have accused foreign content providers of free riding, but the latter have balked at paying network usage fees as no other country has forced them to pay such fees. Network use fees penalize content providers for hosting popular content and distort market incentives. As a result, larger content providers could reduce services like Twitch and pull back investments.<\/span><\/p>\n Read more at: <\/b>The network fee fiasco that could cripple South Korea\u2019s internet<\/b><\/a><\/p>\n