Nothing Is Free: Contrarian Thoughts On Broadband Policy

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Nothing Is Free: Contrarian Thoughts On Broadband Policy
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The ongoing disputes on network usage disputes with Google and Netflix in South Korea

Second, the fees that Korean ISPs demand from Google or Netflix are access fees or paid peering. It is not a termination fee according to the SPNP , which is controversial in Europe. SPNP refers to the case where the CP already pays the access fee to the originating ISP and also pays the termination fee to the terminating ISP, but Korea is not even receiving the access fee, so it is asking for the fee.

Third, in the term “free peering”, “Free” does not mean that no payment is required. In Korea, some CPs and civic groups used to claim that the Internet is free, suggesting the term “Free Peering”. However, “Free” means that the ISP that owns the network have omitted cumbersome cash transactions after providing the network to each other. That is, bartering took place, and no cash was exchanged.

Fourth, in Korea, broadband Internet service is reclassified as a common carrier’s communication service and ISP is a kind of common carrier. On the other hand, CP/CDN is the user. Therefore, what Korean ISPs demand from Google/Netflix is the fee, not termination fee or interconnection fee . Because Google and Netflix are not ISPs, they do not fit into the reciprocal settlement-free interconnection model. Also, the FCC Net Neutrality Orders also excludes CDNs from BIAS .

Of course, Google and Netflix often connect their own CDN and local ISP networks and trade in terms of settlement free transation. However, it is unknown how they are actually transacting with local ISPs. In particular, when a contract is signed on the premise of payment, it is more difficult to know because the information is not disclosed to the outside world.

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