Consumers pay for Internet infrastructure and data carrying capacity in the form of a monthly subscription payment. However, telcos around the world aren’t entirely happy with this arrangement. They want more money from us.
The details are complex and depend upon the Internet interconnection network and payment arrangements among the stakeholders in that area. However, in the end all costs will land back in the lap of the consumer.
The telcos want content producers to pay extra fees because of the increased demand their activities place on network infrastructure. Such schemes are known generally as SPNP (Sending Party Network Pays) or simply Sender Pays. The idea has been around for a good many years but it has proven difficult to get the market to accept SPNP fees. Are such additional costs justified? It depends on who you ask.
In Korea, after an early failure to gain governmental approval for such fees, things ssem to be taking a different turn. There is currently a Bill before parliament to codify good faith negotiation for SPNP fees between ISPs and content providers. So, it seems that the Korean Parliament and courts agree that Korea Telecom (the main carrier) does have a point.
Not surprisingly, Netflix, Google, and other large content providers are fighting against the Bill. They, and many other critics of SPNP, say the Telcos are simply ‘double-dipping’.
Why would we care what happens in South Korea?
Because the success of Korea Telecom in moving the issue forward emboldens other telcos around the world to follow suit. Now ETNO (European Telecommunications Operators’ Association) has enlivened the issue for the EU once again after it failed to gain traction some years ago. If it succeeds, others will follow and we would likely see a push for the introduction of SPNP fees in Australia and New Zealand.
BICSI knows better than any other group how expensive it can be to create the infrastructure for large-scale data transfers. But where to draw the line? The debate around this issue is usually hysterical and peppered with claims that ‘the sky is falling’, but the sky hasn’t fallen yet. It is also suggested that SPNP is going to ‘kill’ the Internet! Hardly, but we’re fairly sure ACMA is going to earn its keep in dealing with this issue. Watch this space.