Samsung Smart TV suspended by ISP in Korea

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Samsung's smart TV services have been suspended by the leading landline Internet service provider (ISP), KT, from February 10 in Korea. LG's smart TV services, as well as those from other brands, are still functioning while Samsung smart TV services have been blocked by KT. Of course, this only affects consumers who bought Samsung-branded smart TVs and have an internet connection from KT.

Smart TV is one of the emerging home entertainment trends which combine digital TV, Internet browsing, apps and a settop box into one. Many TV manufacturers are heading into the category and competition had already begun from last year. Most of us know that these features are based on an Internet connection. Otherwise, a smart TV would just be a digital TV.

Why did KT suspend its services on for Samsung Smart TV?

KT is saying that smart TV services generate high traffic on its network and that smart TV content is the main reason for this issue. Most of them are HD-VOD services together with a number of education apps and games.

KT's argument is simple, smart TVs are a major device category that generates heavy traffic on its network and so TV manufacturers should pay for those services. What about other mobile devices such as smartphones, tablets and PCs? Those manufacturers also require paying for Internet network services?
What about consumers? Those consumers who are already paying for their Internet service on KT have the right to use Internet services on their products at home. They use PCs, laptops, tablets, smartphones, IPTV services and more which require an Internet connection, so what is really the matter with smart TVs? They are just other variations of those devices.

SKT and LG U+, two other ISPs, are silent on the issue while LG isn't involved in it because they are already around a table discussing the matter with KT while Samsung has boycotted it.

You may be able to guess why Internet service providers (also mobile carriers) are beginning to act in this way if you look into the latest industry events. Many Internet messengers came out to avoid SMS/MMS profits from carriers and these applications are sold from the Google Android market or Apple App Store. Smart TV and free VOD apps are taking the profits from the IPTV services of ISPs, too. These cash-cow services are facing a tough time. However, the Internet environment is growing constantly with heavy traffic generators so network maintenance costs are returned to carriers with high risks involved. The ISPs therefore need to find a way to solve these matters in the early stages before the situation gets out of hand.

However, Korea is an advanced country with world-class manufacturers such as Samsung and LG, which also sell their smart TVs worldwide. I just wonder if this issue may affect their products or business strategy somehow.

Moreover, the media has started to talk about "Net Neutrality" because of this matter and are seeking a specific reason for this issue.

This isn't the first time that there has been trouble between KT and Samsung; they had an issue with the iPhone and Galaxy smartphones before. Let's see how these two giant companies will settle this issue and what the other two carriers will do as well. Also, what will happen to LG's smart TV sales while Samsung's services are suspended by KT?