Model analysis on the economic impact of paid peering: Implications of the Netflix vs. SK broadband dispute

IF 5.9 2区 管理学 Q1 COMMUNICATION
Toshiya Jitsuzumi
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Abstract

In April 2020, Netflix, Inc. and its Korean subsidiary Netflix Services Korea Ltd. filed a lawsuit against SK Broadband, Inc., seeking confirmation that there were no obligations to bear network costs. On June 25, 2021, the Seoul Central District Court rejected Netflix’s argument and acknowledged the existence of an obligation to negotiate fees. Netflix subsequently appealed the decision on November 5, 2021. However, on September 18, 2023, SK Broadband and parent SK Telecom suddenly announced in a joint statement with Netflix that they had agreed to establish a strategic partnership to end all disputes. This study provides an overview of the case, discusses the related concepts, and analyzes the meaning of the case outcome in terms of efficient resource allocation within the broadband ecosystem. A model analysis revealed that, with the freedom of price setting, the effect of introducing paid peering is neutral with respect to resource allocation; however, when that freedom is impaired, for example by price regulations or net neutrality obligations, the introduction of paid peering not only generates benefits for the introducing players and their customers but it also results in damage to overall social welfare. In addition, this study shows that paid peering can be used as a means of internalizing externalities when the external economies of network/content investment are considered. These arguments are expected to make a theoretical contribution to the debate on shifting the economic burden of network infrastructure to over-the-top players, and help the telecom regulator to better design universal broadband scheme.

Abstract Image

付费对等互联的经济影响模型分析:Netflix 与 SK 宽带争端的影响
2020 年 4 月,Netflix 公司及其韩国子公司 Netflix Services Korea Ltd.对 SK 宽带公司提起诉讼,要求确认不存在承担网络费用的义务。2021 年 6 月 25 日,首尔中央地方法院驳回了 Netflix 的诉讼请求,并承认双方存在协商费用的义务。Netflix 随后于 2021 年 11 月 5 日对该判决提出上诉。然而,2023 年 9 月 18 日,SK 宽带和母公司 SK 电讯突然与 Netflix 发表联合声明,宣布双方同意建立战略合作伙伴关系,以结束所有争议。本研究概述了该案例,讨论了相关概念,并从宽带生态系统内有效资源配置的角度分析了该案例结果的意义。模型分析表明,在价格制定自由的情况下,引入付费对等互联对资源配置的影响是中性的;但是,当这种自由受到损害时,例如受到价格法规或网络中立义务的影响,引入付费对等互联不仅会给引入者及其客户带来利益,还会导致整体社会福利受损。此外,本研究还表明,如果考虑到网络/内容投资的外部经济性,付费对等互联可以作为外部效应内部化的一种手段。这些论点有望为有关将网络基础设施的经济负担转嫁给顶级运营商的讨论做出理论贡献,并帮助电信监管机构更好地设计全民宽带计划。
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来源期刊
Telecommunications Policy
Telecommunications Policy 工程技术-电信学
CiteScore
10.80
自引率
12.50%
发文量
122
审稿时长
38 days
期刊介绍: Telecommunications Policy is concerned with the impact of digitalization in the economy and society. The journal is multidisciplinary, encompassing conceptual, theoretical and empirical studies, quantitative as well as qualitative. The scope includes policy, regulation, and governance; big data, artificial intelligence and data science; new and traditional sectors encompassing new media and the platform economy; management, entrepreneurship, innovation and use. Contributions may explore these topics at national, regional and international levels, including issues confronting both developed and developing countries. The papers accepted by the journal meet high standards of analytical rigor and policy relevance.
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