By Yoon Ja-young
The battle between Samsung Electronics and KT entered a second round after KT blocked the access by the former’s smart TVs to the Internet Friday, citing the traffic burden on its network.
Samsung filed its case with the Seoul Central District Court to stop KT limiting the access of its televisions to the network Friday, denying allegations by KT that the sets cause too much traffic.
“Samsung Electronics doesn’t provide real-time broadcasting content. The real-time broadcasting applications in smart TV don’t incur bigger traffic than IPTVs,” said Lee Kyung-shik, a Samsung Electronics executive in charge of the video display business.
The electronics firm said KT is hurting to consumers. “It is against the network neutrality guideline, which requires that all consumers should be free to use the services.” As KT limited Samsung smart TVs from its network, Samsung TV owners using KT networks can’t use applications though they can continue watching TV.
KT has been demanding Samsung pay for using its network, but Samsung said it is a device manufacturer, not a service company that makes money through the Internet.
The communications company, however, said that Samsung’s smart TV is inconveniencing Internet users. “It is like a tank called Samsung smart TV driving on a highway built by KT… the 17 million Internet subscribers of KT are having trouble,” Kim Hyo-shil, a KT executive said.
KT has argued that smart TV, which causes 5 to 15 times more traffic than IPTV, slows down Internet services.
He also noted that major carriers in Europe announced plans to charge online services like YouTube for incurring huge traffic.
Pyo Hyun-myung, president of the mobile business unit at KT, said on Twitter, “70 percent of OECD member countries, or 25 countries, are limiting the use of networks or charging according to traffic. Since smart TV manufacturers are making additional income by free-riding on the Internet, it is rational that manufacturers and not consumers should shoulder the burden.”
KT, however, hasn’t take any action toward LG Electronics which also makes smart TVs. KT explained that LG Electronics was cooperative in discussing fees for using its network but the tension between KT and Samsung Electronics is somewhat deep-rooted. It dates back to 2009 November when KT introduced Apple’s globally successful iPhone here.
Though the iPhone was sweeping the global handset market, local mobile carriers refrained from immediately introducing it here as they considered Samsung, the biggest handset manufacturer here. Samsung Electronics had a late start in the smartphone competition, but caught up by developing and selling the Omnia and Galaxy.
KT, however, made a bold decision to sell the iPhone and that helped pull up its market share.
Samsung Electronics retaliated, supplying its Omnia smartphone later to KT than its rival mobile carriers SK Telecom and LG Uplus. Samsung is also known to have offered smaller subsidies for mobile phones they supply to KT.
KT Chairman Lee Seok-chae has naturally been complaining about Samsung. Last November, he perplexed Samsung by saying it survives as it had time, thanks to a delay of the iPhone’s arrival in Korea.
It is yet to be seen whether the tension will escalate but neither firm is likely to want a worst-case scenario as they have to continue cooperating as a mobile carrier and handset manufacturer.