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Samsung, KT in cat fight over smart TV access

By Kim Tong-hyung

The technology industry has agreed to plug the television into the Web. However, deciding on what (and what not) viewers get to see is proving to be a more difficult process.

Samsung Electronics, the Korean electronics giant that is the world’s leading maker of flat-screen televisions, was furious Friday after KT, the country’s leading telephone and broadband provider, acted on its threat to restrict Samsung’s Internet-enabled televisions from accessing its network.

As of Friday morning, the users of Samsung’s ``smart’’ televisions were prevented from downloading content on their machines through KT’s high-speed Internet network.

KT has raised complaints about the heavy traffic generated from the software applications and content enabled on Samsung’s televisions, which the carrier claims bogs down the experience of other Web-television users. Such ``free-riding’’ raises the risks of a possible blackout, KT says.

KT and other Internet operators, which are struggling to get more customers for their Internet protocol television (IPTV) services, have been demanding Samsung and other smart television makers to pay extra fees for network usage.

The conflict has also pushed the debates on ``net neutrality’’ to the forefront as the private sector and government discuss whether Internet providers should be required to treat all online traffic equally or have say in determining what data are passed to end users.

Samsung is having none of the ``free-riding’’ argument and hit back legally, filing a court injunction against KT’s actions.

The Korea Communications Commission (KCC), the country’s broadcasting and telecommunications regulator, is siding with Samsung in the cat fight and was quick to denounce KT’s moves as ``inappropriate.’’

However, KCC’s ability to influence telecommunications firms has diminished dramatically since the disgraceful departure of former chairman Choi See-joong in the wake of a bribery scandal over pay-television licensing.

One of the closest aides to President Lee Myung-bak, Choi’s influence within the administration had allowed KCC’s committee-based decision-making process to be powerful and effective. However, without Choi that the helm, KCC officials are experiencing difficulties in having giant corporations like KT ``behave.’’

``Electronics makers and the KCC have been operating a forum for more than year to discuss the right policies related to net neutrality and the current controversy surrounding smart televisions was expected to be a subject of debate on the next meeting on Feb. 15,’’ said a Samsung Electronics official, expressing regret on KT’s decision to employ the restrictions.

``KT has been claiming that electronics makers must pay for network usage, while our position was that the decisions on payment should be decided after the KCC makes a meaningful decision on net neutrality.

``The sudden decision by KT shows its disregard of the massive inconvenience it caused to consumers and could corrupt social discourse of the issue related to net neutrality. KT’s claims are absurd and unprecedented here or elsewhere, and the carrier has yet to provide a clean cut proof that applications generate traffic excessive enough to create network disruption.’’

KT’s moves only affected Samsung’s televisions as the company is in talks with LG Electronics over payment for network usage. The carrier has questioned Samsung’s willingness to negotiate with it.

Samsung is aiming to sell at least 25 million units of smart televisions globally this year. According to market observers, domestic sales of smart televisions could reach around 1 million units by the end of the year.