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Samsung, KT lock horns over smart TV

Feb. 13, 2012 - 16:24 By Korea Herald
Company threatens to take further legal actions against carrier


Samsung Electronics urged KT Corp. to immediately resume Internet services for its smart televisions, threatening it would file additional legal procedures on top of the injunction the firm filed against KT last Friday.

On Friday, KT limited Internet access of Samsung-made smart TVs in protest of Samsung’s refusal to pay for its network use. The network service provider, however, excluded LG Electronics’ smart TVs, saying that the two firms were currently in talks.

When the owners of Samsung smart TVs that are subscribed to KT’s Internet network try to access the online services, such as the video-on-demand services and TV applications, via their TV sets, they are met with a message that reads: “Internet at TV service is only reachable through Internet connection. It may be unavailable for service in some countries.”
Lee Kyung-shik, vice president of the visual display business at Samsung, explains its position over KT’s Internet cut on its smart TVs at its office in southern Seoul on Monday. (Lee Sang-sub/The Korea Herald)

“KT’s claims are a matter that should be solved between the telecommunications service provider and the device manufacturer,” said Lee Kyung-shik, vice president of visual display business at Samsung. “KT must give Internet access to our smart TV owners and discuss the case once against at the panel which was taken part by the related government branches.”

According to Samsung officials, the No. 1 TV maker has sold about 800,000 units of smart TVs in the country and 300,000 units are subscribed to KT Internet networks.

“We’re also considering additional legal procedures since we must minimize the inconvenience of our consumers,” he said.

The online data traffic triggered by the smart TVs is about 1.5 to 8 megabytes per second ― similar level compared to the Internet protocol TVs, said Samsung officials, adding that only its VOD services and the TV apps use the Internet.

“The profits earned from sales of TV apps only amounted to 9 million won last year,” the officials said. “Samsung Apps has been established to design an ecosystem, not to record big profits.”

In response to Samsung’s statements, KT held another press conference later in the day to claim the Internet shutdown of Samsung-made smart TVs was a reasonable measure devised for the free riding of its networks.

Stating that the 3-D content of Samsung’s smart TVs trigger data traffic that number up to 25 megabytes per second, it said it will withdraw from the Internet ban if Samsung decides to continue negotiations related to the matter.

By Cho Ji-hyun (sharon@heraldcorp.com)