Network fees revisited

Network fees revisited

An analysis of the “fair-share” debate

This policy brief looks at developments in the debate on termination charges, with a particular focus on the arguments of the stakeholders involved, new reports and studies, and recent developments in South Korea.

Network charges based on the sending party network pays principle are currently described by telecommunications companies as a "fair share" and should – in their view - in future be paid by the content providers who account for a large proportion of network traffic in access networks. This means that network operators demand regulatory intervention in the market that would require the introduction of a "discriminatory non-zero price rule" from a network neutrality perspective.

This short study therefore looks at the developments in the debate on network charges, with a particular focus on recent developments. In particular, the arguments of the stakeholders involved are scrutinized and new reports and studies are presented with a special focus on relevant aspects of the debate. In addition, the latest developments in South Korea are discussed. The study concludes with an overview of the challenges and risks of grid charges and possible solutions.