The debate over network usage fees is set to intensify as former President Donald Trump’s election victory ushers in new leadership at the Federal Communications Commission (FCC). Brendan Carr, nominated as FCC chair on Nov. 18, has been a vocal critic of what he calls Big Tech’s “free ride” on network infrastructure. Network usage fees refer to payments that content providers like Google and Netflix would make to internet service providers (ISPs) in exchange for using their networks. However, tech giants have largely resisted such payments, citing principles like net neutrality.
A South Korean telecom official noted that if Big Tech begins paying network fees to U.S. ISPs under the next Trump administration, similar demands could emerge globally.
In South Korea, telecom companies have long argued that content providers should pay network usage fees, contending that delivering high-bandwidth content requires expensive infrastructure upgrades. While domestic firms like Naver and Kakao already pay hundreds of billions of won annually, global players such as Google and Netflix have resisted similar payments.
Carr has consistently advocated for Big Tech to bear a fair share of network costs. In a 2021 op-ed titled Ending Big Tech’s Free Ride, he wrote, “Big Tech has been enjoying a free ride on our internet infrastructure while skipping out on the billions of dollars in costs needed to maintain and build that network.” He concluded, “We should start requiring Big Tech to pay its fair share.”
A South Korean industry source predicted that Carr’s strong stance could lead to greater global acceptance of network usage fees.
The issue also came to the forefront during South Korea’s 2024 National Assembly audit. Google Korea Country Director Kim Kyoung-hoon defended the company’s position, citing investments in undersea cables and cache servers—localized servers that store content to reduce delivery times. Google claims these investments help streamline content transmission and support global infrastructure.
However, South Korean telecom companies have countered that such investments are self-serving. “Google’s cache servers are akin to overseas retailers setting up local warehouses to speed up delivery,” a telecom official said. “Just as logistics companies charge for domestic deliveries, telecom providers should be compensated for delivering content locally.”
In response to the ongoing debate, several bills to amend the Telecommunications Business Act have been introduced in South Korea’s 22nd National Assembly. The proposed amendments aim to ensure that global content providers pay fair network usage fees. Local platform operators argue that Google profits significantly from domestic networks while paying nothing, creating what they call an unfair advantage over Korean firms.
