The global policy movement to improve connectivity and to create close digital divide relationships in international markets for data and regulatory policies. Papers sometimes present confusing terminology: use, transition, prospecting, and connection. Each word has a specific meaning and practice. Politicians could benefit from a comprehensive set of objectives and tools, in addition to a detailed review of the country’s own network and practices. Here are some key findings from the report.
The Rise of Parallel, Proprietary, & Unregulated Internet Platforms
Germany’s Federal Agency has commissioned a study on competition in transit and prospective markets (141 pages), noting that the issue has not been examined by European regulators for at least 5 years. The report observes that internet traffic in Europe will grow by 25 percent year over year, 80 percent of this video traffic, social media and games, and only 5-6 players (eg platforms Netflix, Amazon Prime, YouTube etc.) therefore more than half of all traffic. These players have more international backbone facilities than the world’s broadcast providers and have launched a third-party gateway for building their own backbones, undersea networks and data centers – The gateway business declined as a result. Platforms completely avoid internet commerce where the price is transparent, instead building networks they prioritize for content ownership and the efficiency and profitability of their services.
The massive development and expansion of the backbone and delivery infrastructures by these players are creating a higher global Internet architecture, the structure of the connection and the relationship between the platforms and the wide providers, creating disadvantages for the operators. The sustained growth of internet traffic continues to shape the dynamics of internet architecture, with the continued disproportionate growth of streaming video and cloud services having the greatest importance. Despite the many advantages of private provisioning networks, conflicts can emerge when the parties exchange data, which is the relative power of the market between linked entities. While the architecture of the Internet has changed dramatically in the last decade or so, the legal and regulatory framework for e-commerce has changed little, and the largest databases in these international data markets are essentially irregular. The exception is South Korea with a unique approach to broadband policy and recognized as a global leader in broadband.
Network Syntax vs. Termination
South Korea has had a framework for using the network for nearly a decade. The policy ethos recognizes the shared responsibility between broadband providers and content/application providers to ensure quality data delivery and user experience. In practice, the plan provides for the installation and maintenance of the fiber received from the content provider to the core broadband provider. This provides dedicated bandwidth for data content and protects against a degraded network experience for users who cannot access that content.
Remember, this practice has nothing to do with the end users of the business. It appears that Analysys Mason, the Internet Society, and others are confusing network usage (which describes the relationship between broadband providers and content/application providers) with the “sending party network” (SPNP) termination regime. In South Korea SPNP is a historical regime that only applies among Tier 1 telecommunications operators if their trade-in ratio does not exceed 1:1.8.
While cost recovery is encouraging in South Korea, it’s not news, so the US government is playing a big game. For example, Netflix rejected demands for recovery of damages brought the provider to court, saying that it is not obliged to pay for the network through the network programs necessary to manage the content of Netflix, which increased 26-fold almost overnight. Netflix is dead, and there’s a reason for the appeal.
Similarly, Facebook has demanded that South Korean software providers install Facebook servers within their networks for free. For providers of wide jars; yet servants have a cost, and cannot be returned to other content, and therefore they are useless and redundant, if they are held gratuitously. To address the issue, Facebook blocked some of these servers and traffic was redirected to other countries and operators. This undermined the end user experience, and Korea’s telecom regulator fined Facebook for that intentional damage. Facebook brought the matter to court and won, but the abuse caught the attention of the Korean Parliament.
Moving forward, the Group is considering adapting the Telecommunications Business Act to stipulate that companies deal in good faith with requirements for information and transparency of pricing. There is no commandment of the law.
Datasets needed for verification
Policymakers have little information about international data markets. While useful information about international data commerce is available at the university, from Cisco and Sandvine at the global level, it tells us little about the behavior of the actors within the commerce trade and the microeconomics of individual networks.
Previous works have been compared to provide more data, notably from Strand Consul, which collects data on intrusive video data in rural networks and documents the pros and cons of different access methods. Congress has considered addressing this through the Internet Funding PROBABLY with Defined Contributions Act or the DIRECT CONTRIBUTIONS Act which allows the FCC to conduct the necessary study.
In any case, there is no information that shows damage to South Korea’s broadband plan. On the other hand, the country is celebrated for fiber to the home (86 percent) and 5G (47 percent adoption). The country is considered a first mover in network innovation and a global force in content development for local consumption and export. In addition, Google and Netflix enjoyed annual revenue growth in the country. It seems that broadband price recovery is consistent with a thriving ecosystem.