Korean carriers to charge internet companies for network use

South Korea’s major internet providers KT, SK Broadband, and LG Uplus agreed to charge key internet portals such as Naver, Daum, and Google for use of their networks. As smart TVs and internet-based video services gain momentum, network providers are looking for ways to share the burden of rapidly growing data traffic, say experts.

Korea’s main network operators and the Korea Telecommunications Operators Association (KTOA) reached an agreement on a scheme designed to impose network fees on major internal portal sites and published a guideline on the price-sharing scheme, said industry sources Wednesday.

In essence, the guideline calls for the application of interconnection fees used in telecom networks to the internet as well. The exact fees have not been set, but the most likely pricing will be between 75 won to 100 won ($ 0.09) per gigabyte (GB). Foreign firms like Google, owner of Youtube, and Apple which runs a successful platform business will be charged through other methods such as legal claims for profit-sharing.

For full article see Maeil Business.