Proposed Amendment to the Telecommunications Business Act
Sponsor: MP JUN Hye-Sook and 1o other MPs
Issued: 2020. 12. 11.
Reason for Introduction:
Recently, there have been arguments that while global value-added telecommunications business operators such as Google and Facebook pay fees for using telecom networks, they pay unreasonably low telecom network usage fees in Korea. However, the relationship between facilities-based telecommunication business operators and value-added telecommunications business operators for the use and provision of telecommunications networks is determined through individual negotiations between the business operators. The relevant authorities are not fully aware of the relationship and there is no legal ground to restrict unfair practices in such relationships. Therefore, this bill seeks to create an environment of fair competition with regard to the use or provision of telecommunication networks by prohibiting unfairly imposing unreasonably discriminatory conditions or restrictions when value-added telecommunications business operators enter into contracts to use or provide telecommunications networks and allowing the Korea Communications Commission to conduct a status survey in order to understand the current status with regard to the use and provision of telecommunications networks (newly proposed Article 50(1)1-2, Article 50(1)2-2, and Article 51-2 of the bill).
|Current Provisions||Proposed Amendment|
|Article 50 (Prohibited Acts)(1) Telecommunications service providers shall not engage in or have other telecommunications service providers or third parties engage in any of the following acts which undermine or is likely to undermine fair competition or users’ interests (hereinafter referred to as “Prohibited Acts”):||Article 50 (Prohibited Acts)(1) ———————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————:|
|1. (Omitted)||1. (Same as the current provision)|
|<Newly Inserted>||1-2. Act of unfairly imposing unreasonable or discriminatory conditions or restrictions on the use or provision of telecommunications network related to the provision of digital content to users (hereinafter referred to as “Use or Provision of Telecommunications Network”);|
|2. (Omitted)||2. (Same as the current provision)|
|<Newly Inserted>||2-2. Act of unfairly refusing to execute a contract on the Use or Provision of Telecommunications Network or failing to perform an executed contract without a justifiable reason;|
|3. to 8. (Omitted)||3. to 8. (Same as the current provision)|
|(2) to (3) (Omitted)||(2) to (3) (Same as the current provision)|
|<Newly Inserted>||Article 51-2 (Survey on Status of Use or Provision of Telecommunications Network)(1) The Korea Communications Commission may conduct status survey to evaluate the status of the Use or Provision of Telecommunications Network and disclose the results thereof.
(2) With regard to the status survey under Paragraph (1), the Korea Communications Commission may request facilities-based telecommunications service providers to submit necessary materials such as the status of traffic transmission volume/route for each value-added telecommunications service provider and fees for use of telecommunications network. However, if there is a necessity to verify or supplement materials submitted by facilities-based telecommunications service providers, the Korea Communications Commission may also request the relevant value-added telecommunications service providers to submit materials. Persons requested to submit materials shall comply with such request unless there is a justifiable reason.
(3) The subjects, details, methods, procedures, and items necessary for the disclosure of the results of the status survey under Paragraphs (1) and (2) shall be determined by the Presidential Decree.
|Article 52 (Measures Against Prohibited Acts)(1) The Korea Communications Commission may order telecommunications service providers to take any of the following measures if it finds violation of Article 50 (1). Provided that, in the case where the Korea Communications Commission orders to take measures prescribed in Subparagraphs 1 through 5, 8, or 9, it shall hear opinions of the Minister of Science and ICT:||Article 52 (Measures Against Prohibited Acts)(1) —————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————-:|
|1. to 3. (Omitted)||1. to 3. (Same as the current provision)|
|4. Execution/performance or change of terms of arrangement between telecommunications service providers;||4. ————————————————————– arrangement or contract ———————————————————–;|
|5. to 11. (Omitted)||5. to 11. (Same as the current provision)|
|(2) to (8) (Omitted)||(2) to (8) (Same as the current provision)|
|Article 104 (Administrative Fines)(1) to (4) (Omitted)||Article 104 (Administrative Fines)(1) to (4) (Same as the current provision)|
|(5) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won:||(5) ————————————————————————————————————————————-:|
|1. to 8. (Omitted)||1. to 8. (Same as the current provision)|
|<Newly Inserted>||8-2. A person who fails to comply with the request for submission of materials under Article 51-2(2) or submits false materials;|
|9. to 17. (Omitted)||9. to 17. (Same as the current provision)|
|(6) (Omitted)||(6) (Same as the current provision)|
This Act shall enter into force six months after the date of its promulgation.