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The Malaysian Insider

Technology

S. Korea KT to take on ‘free-riding’ Internet TVs

February 09, 2012

SEOUL, Feb 9 — KT Corp, South Korea’s top Internet provider, said today it would limit access to certain TV applications that slow down overall network speed in a move that may cause a clash with major television manufacturers aggressively marketing Internet-enabled TVs.

South Korea, the world’s most wired country, is also home to the world’s top TV makers — -Samsung Electronics Co and LG Electronics Inc, which are actively promoting TVs that offer applications via high-definition quality video and 3D content in a bid to protect margins as overall TV market growth slows.

“Internet-enabled TVs increase network traffic by up to 15 times compared to conventional IPTVs. At the current growth rate and user increase, the network won’t be able to accommodate traffic requirements and consequently it could slow down overall Internet speed,” KT executive Kim Hyo-sil told a news conference.

“TV manufacturers are free-riding on our network, while our capacity to invest and upgrade it is shrinking due to worsening profitability. We need a better business model,” Kim said.

KT, which owns nearly half the country’s fixed-Internet market, estimates around one million Internet-enabled TVs were sold as of end-2010 in South Korea, with some 100,000 heavy downloaders.

The issue could have wider global implications as Google and Apple Inc also prepare Internet-enabled TVs that allow viewers to access social networking, online games and music.

Samsung, the world’s top TV maker, had no immediate comment. It aims to sell 50 million TVs this year globally with half the shipments Internet-enabled.

LG Electronics also aims to have around 60 per cent of its TVs come with its own NetCast Internet platform installed. — Reuters