When Over-The-Top Is Over the Top: A Political Economic Analysis of Network Usage Fees in South Korea

Abstract

This study investigates the disputes between global content providers (CPs) and South Korean Internet service providers (ISPs), notably SK Broadband (SKB), over network usage fees, which Korean ISPs argue global CPs—such as Google, Netflix, and Facebook—should pay because of the substantial network traffic they generate. Key cases include disputes between Facebook and the Korean Communications Commission (KCC), Netflix and SKB, and the Korean government’s legislation affecting Google (YouTube) Korea. These case studies are examined through the lens of critical political economy of communication, with emphasis on media hegemony. The case studies indicate that global CPs adopted multiple strategies to gain power over Korean ISPs. Although these strategies differed, they shared a similar hegemonic goal: creating a regulatory architecture where they did not have to pay network usage fees. We suggest that the battle between South Korean ISPs and global CPs is ultimately a battle for control over the global Internet.