In order to control apps and streaming videos limit, which generally accounts for a larger bandwidth – South Korean’s largest broadband provider, KT, reportedly starting from Friday would limit the Internet access of smart TVs – urging TV makers like Samsung and LG to pay the costs for network use.
“The decision is aimed at protecting a majority of Internet users and preventing (smart TVs) from distorting the market system,” said Kim Hyo-sil, executive vice president of KT’s smart network policy task force. “If the fast adoption of smart TVs continues, there is also possibility of network blackout,” the official said, calling the network use of smart TVs “free riding.”
KT said currently its move will only affect Samsung’s smart TVs. The company is currently in talks with LG Electronics over payment for network usage. “Since Samsung said it will not negotiate, we have decided to restrict access of its smart TV applications to our Internet networks,” KT said in a statement.
Samsung which earlier reported record earnings for the fourth quarter last year results with a 17% rise in profits in the final three months of 2011 has seen stronger TV sales so far this year and even plan to introduce cheaper TVs, as lower-end models results in higher demand.
The South-Korean Electronics giant aims to sell at least 25 million smart TV units this year – and with such moves from broadband providers it will probably affects a lot to the Samsung and other companies. The government called the actions “inappropriate” and plans to take some action if KT continues blocking access for smart TVs.