Increased Need for Traffic Management for 5G Service Quality
Necessity to Improve Current Net Neutrality Regulations

As preparation for commercialization in March 2019 of fifth-generation (5G) mobile communication services progresses, there are calls to revise the 'net neutrality guidelines.' The United States abolished its net neutrality policy at the end of last year.

Following this, Democratic Party lawmaker Byun Jae-il held a '5G Convergence Era, New Directions in Net Neutrality Policy Discussion Forum' regarding the reestablishment of domestic net neutrality policy.

Net neutrality is a concept that all data transmitted over Internet networks should be treated equally regardless of content, type, or provider. This concept emerged in the early 2000s. It was raised due to concerns that Internet service providers (ISPs) could discriminate against or block traffic due to insufficient high-speed Internet infrastructure, concerns about abuse of dominance, and infringement of users' right of access.

Net neutrality issues stem from the conflict between Internet content service providers (ICPs) and ISP companies that build Internet networks and provide wired and wireless Internet services. 5G is expected to provide specialized networks through network slicing technology and conduct traffic management to guarantee network quality. As the need for network investment incentives increases due to recent proliferation of smart devices and the advent of 5G, arguments for change are being raised.

Ko Sam-seok, standing committee member of the Broadcasting and Communications Commission, stated, "5G must be provided in a customized manner suited to each service. To do this, discrimination in network connectivity is necessary. It is time to reconsider the net neutrality policy that has been maintained for 20 years," and added, "Rather than making definitive statements about the existence or abolition of net neutrality policy, we should review it with the goals of industry revitalization, enhancement of national competitiveness, and user protection."

Shin Min-soo, professor at Hanyang University, stated, "Considering the global universality of net neutrality policy, while maintaining transparency that can directly impact user quality in line with Korea's industrial competitiveness, there is a need to increase economic management flexibility," and explained, "Measures must also be developed to resolve policy uncertainties regarding managed services and similar offerings."

He added, "Uniform net neutrality regulations that hinder uncertain 5G market prospects and the launch of new business models may pose risks to investment and innovation."

Yoon Sang-pil, director of external cooperation at the Korea Telecommunications Business Association, stated, "Due to the explosion of Internet traffic, we are making large-scale investments of 5 to 8 trillion won annually. This is not a scale that can be handled by telecommunications companies alone," and argued, "Network investment is led by telecommunications operators, but Internet service providers are capturing the revenues. There is a need for a method to also burden large-traffic-generating Internet service providers."

He continued, "5G has quality differences in speed and connectivity, which conflicts with current net neutrality principles. There is a need to modify it in line with current times to match commercialization," and pointed out, "5G convergence services have different network quality by service and different rates for provision. If the current net neutrality is maintained, pricing will fall into chaos."

In opposition to this, Cha Jae-pil, policy director at the Korea Internet Enterprise Association, stated, "There is strong backlash against net neutrality abolition even within the United States. Internet service providers are already paying network usage fees," and said, "Network operators are not only receiving usage fees from Internet service providers but also double-charging from users. Users pay fixed costs only on wired networks and pay-per-use fees on wireless networks for what they use."

He countered, "Net neutrality must be upheld. Currently, telecommunications companies are also guaranteed business autonomy through guidelines. Rather, net neutrality should move from guidelines to legislation."

Opinions also emerged that how the Internet environment has changed should be considered in net neutrality policy. In the early Internet market environment, no single operator dominated the market. The question is whether the concepts from that time remain valid today.

In response, Kim Jae-young, director of the Broadcasting and Communications Commission's User Policy Bureau, stated, "Because the Internet environment is global, domestic policies cannot be pursued independently. We must reconsider based on post-regulation criteria such as network investment activation issues, fair competition issues, and user welfare," and concluded, "The Broadcasting and Communications Commission is establishing an Internet Co-Prosperity Development Council to gather diverse opinions from operators regarding net neutrality."