Saturday, May 19, 2012

KT: OTT Providers should Pay or "will see a big data blackout"

Korea's KT joins the trend we saw in the past in Europe (here) of demeaning that large Over the Top content providers will pay for network usage, and asks for the regulator to act.

Kim Yoo-chul reports to Korea Times that "KT Chief Executive Lee Suk-chae (pictured) has urged the government and the nation’s leading technology companies LG and Samsung Electronics to pay for using its networks .. Network traffic increased 153 times since smartphones came to Korea three years ago.. Huge burdens over network investments are weighing on consumers as KT has no option but to collect money from customers to secure cash for the networks".

"If the current situation continues, then Korea will see a big data blackout. This is an expected scenario. There’s no free lunch. It doesn’t make sense to ride free on networks".

Dylan Bushell-Embling adds in telecomasis that "KT has already started exploring measures to ease the cost burden of over-the-top content. In February, the company briefly blocked OTT content for Samsung's internet-enabled TVs, and threatened to do the same for LG unless it trump up carriage costs. But when regulator KCC objected, KT lifted the ban after just four days" (here).

Related post from November '11 - "Complaint against SK Telecom & KT for Blocking VoIP over 3G (Using DPI)" - here.

See "KT CEO blasts big firms for 'free riding' " - here.

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