The Korea Herald

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Samsung to sue KT over Internet cut

By Korea Herald

Published : Feb. 10, 2012 - 20:42

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Samsung Electronics said Friday that it will take legal action against KT Corp. as its smart TV users are unable to access the Internet via their TV sets from that day.

KT, the nation’s largest fixed-line operator, has started limiting the Internet access of Samsung-made smart TVs from 9 a.m. Friday in protest against the company’s refusal to pay for network use.

Of some 1 million smart TVs sold here, about 340,000 units are Samsung TV sets. The owners who subscribe to KT’s Internet network cannot use smart TV applications or other services like video-on-demand and games.

KT urged TV makers to share the costs for network use, saying smart TVs with high-definition 3-D viewing quality weigh heavily on data traffic.

Unlike LG Electronics, which recently resumed talks with KT, Samsung, the world’s largest TV maker, has showed no intent of paying the costs, citing the ongoing discussions on network neutrality across industries.

Samsung warned of legal procedures against KT in a statement released Friday morning right after KT shut down the Internet service for its smart TV users.

“All stake-holder groups including Samsung have continued talks for network neutrality under the leadership of the Korea Communication Commission for more than a year. And the smart TV issue was also agreed to start from Feb. 15,” the statement said.

“KT’s unexpected action that causes consumer damages is likely to break the social consensus on network neutrality and it is also unprecedented globally.”

The communications watchdog KCC also pledged Friday a strict response against KT, including corrective measures and business suspension, if the company is found to have violated any related laws.

KCC, however, left room for discussions about the issue whether network operators should bear the costs for network use amid soaring data traffic here.
By Lee Ji-yoon (jylee@heraldcorp.com)