Since telecommunications services are the basis of other services, their importance is growing day by day in the digital era. In this situation, as traffic increases rapidly and the investment cost to cover it increases, the argument that content prov...
Since telecommunications services are the basis of other services, their importance is growing day by day in the digital era. In this situation, as traffic increases rapidly and the investment cost to cover it increases, the argument that content providers (CPs) that cause a lot of traffic should pay network usage fee is gaining strength. Therefore, seven bills have been proposed in Korea to mandate or indirectly pressure CPs to pay for network usage fees.
However, these bills, mainly target U.S. big tech companies, require attention to the possibility of violations of provisions regarding “national treatment” (Article XVII of GATS and Article 12.2 of the Korea-U.S. FTA) and “access and use” (Article 5 of the GATS Annex on Telecommunications and Article 14.2 of the Korea-U.S. FTA). In particular, the provisions of “access and use” of the two treaties allow measures necessary to protect the capabilities of public telecommunications transmission service providers for public service responsibility, but prohibit to impose other conditions. The bills are related to the measures to protect suppliers' financial capabilities, contrary to the purpose of the treaty to protect technical and operational capabilities, and furthermore, if there is a less trade-restrictive measure, they may not meet the requirements.
Now, regulations related to network usage fees are being actively discussed in other countries such as the United States, EU, Brazil, Vietnam, and India. The main regulatory measures mentioned so far are to make CP contribute funds, correct unfair negotiations between CP and Internet Service Provider (ISP) through the antitrust law, or propose laws that force payment of network usage fees. However, considering the possibility of violating international law and the effectiveness of dispute resolution, it is most desirable to solve the problem based on consultation between the parties while suggesting the possibility of sharing costs for Internet connections.