World Domination through Planet Development - Chapter 40
Only Krnovel
Episode 40. What? You want me to pay 100 billion won in network usage fees?
PDC branch in South Korea.
An unpleasant surprise awaited Jung-woo when he returned from his trip to North Korea.
“Do you think it would be a good idea to raise the rates?”
Vice President Yoon came to Jungwoo’s office with a bill for approval. It was a proposal to increase the subscription fee for Sara AI.
“Yes, that’s right.”
Vice President Yoon answered with a slightly embarrassed expression. It seemed that he was also frustrated.
“Why? There’s no particular reason to upload it.”
Jungwoo asked with a puzzled expression.
“I guess that’s because the budget is a bit tight these days….”
“You’re on a tight budget? That can’t be true.”
Obviously, most of the servers are rented from Nanosoft, so they are operating at a very reasonable price, but in what area is the budget tight?
Is labor cost a problem? The last time I touched labor cost was when I hired Vice President Yoon Jeong-jik.
Recently, Vice President Yoon’s salary negotiation went up to hundreds of millions of won, but I doubt he came here to cut his own personnel expenses…
“In fact, the additional costs paid to telecommunications companies continue to rise.”
What does this mean? Telecom charges? Are you saying I was overcharged for my internet bill?
“Internet rates have gone up that much?”
I knew you were using separate corporate internet, but was it really that expensive?
“That’s not it… There is a separate fee paid for network usage.”
“Network usage fee? What is that?”
“It’s nothing special, just think of it as an internet usage fee.”
No, what is this?
“So you’re saying it’s a different internet rate? Not the one I know?”
“I think we should see it that way.”
It was just so absurd.
“No, I already paid the fee, so why are you asking me to pay it again? So how much is it?”
“Uh, that’s… I estimate that the current cost that needs to be paid is around 100 billion won per year.”
“yes?!”
Jungwoo shouted in surprise.
If you pay that much, doesn’t that mean you end up earning less money?
No, actually, it’s not that much, but it’s still a big blow right now. It’s because there’s a lot of money going into preparing for the Android sales business, so they have to send as much dividends as possible to the head office. The bigger the operating profit, the better.
“Is that really that much of a fare?”
“Usually, this is the rate that many video streaming companies offer… But since our Sara AI provides comprehensive functions, there are many users who require high-quality images or video production…”
“No, if something like this had happened, you should have told me a long time ago.”
Jung-woo was momentarily flustered and spoke to Sarah, but Vice President Yoon mistook him for reprimanding her.
“Sorry… I’m sorry. This is not only for us, but also for all streaming companies except for some overseas companies, so we can’t help but pay it… .”
“Oh, no. That’s not what I said to the vice president. Anyway, I understand, so please wait a little bit for the fee increase. There will be a solution.”
“Yes, I understand.”
Vice President Yoon bowed and left.
After confirming that he was leaving, Jungwoo spoke to Sarah.
“Huh… What did you say? Network usage fee?”
[Yes, that’s right.]
“But what exactly is that?”
Yes. Actually, I don’t know much about network usage fees. I was surprised by the amount, but if it’s a reasonable amount, I think it’s right to pay it.
[Would you like a brief explanation?]
“Yeah, if I explain it in detail, you won’t understand.”
[Internet users can send and receive data with other users through Internet service providers. Basically, you can use this function by paying the Internet fee that is commonly known. Here, if a specific company like ours, Sara AI, increases its usage, the additional fee is the network usage fee.]
“It doesn’t sound terribly unreasonable… but if you use a lot, you can get more, right?”
[That’s right. As technology advances, the Internet speed is getting faster and the complexity of the data being sent and received is increasing. Inevitably, the Internet traffic between users will also increase. Accordingly, the cost that telecommunications companies maintain will also increase. However, the problem is that the cost that is demanded from users is too excessive compared to the level.]
“How much does that cost?”
[It is approximately 6.43 times higher than the average figure for other advanced countries.]
“What? 6 times? Yes, that’s right. That doesn’t make sense. You’re getting paid 100 billion a year. And you’re not getting paid that much just from our Sara AI alone.”
Jungwoo asked with a momentary look of doubt.
“Is Daehyun involved in this?”
[No, if that were the case, I would have informed you in advance. As the vice president said, it is true that most other companies are paying the same amount.]
“Hmm… Still, it’s a bit annoying. I feel like you’re just wasting my money.”
In the midst of already being busy with the Android business… What? Network usage fees? And on top of that, they’re trying to extort 100 billion won instead of tens of billions?
“Why don’t you start a news agency instead?”
[It won’t be easy to start a telecommunications company. In order to maintain at least the same level as them, you will need to build your own wired network. This will likely require a lot of manpower, time, and the corresponding costs.]
“Ha… It’s a wired network. That means the internet network needs to be laid out nationwide, but that’s difficult, right? Isn’t that… wireless internet also possible? There’s an internet company called Galaxy Link that connects to the internet using antennas?”
It was an internet communications company that launched communications satellites into space around the world from a famous overseas company, making it possible to access the internet anywhere as long as you had wireless access equipment.
[I think that method is quite possible. It is much more cost-effective than the wired network construction I mentioned earlier. However, the company you mentioned has several other concerns, such as the problem of needing a separate communication satellite and the problem of connecting to the Internet via satellite.]
“Ah… That’s right. We need to launch a communications satellite.”
When Jungwoo heard that, he was lost in thought for a moment. After thinking about it for a while, he realized that North Korea also has satellite rockets. It seems like it was a while ago, but he remembered.
“You know, why don’t we just launch a rocket from North Korea and put it up? I heard that the satellite hasn’t been installed yet, but wouldn’t it be okay if you helped a little? If it comes down to it, I can use a little of my personal productivity.”
[If you do that, the communication satellite should be fine. If so, how about using the initial 100 points to get approval for the development of resources underground in the Middle East this time? I will give you the benefit of purchasing the communication satellite and additional equipment I mentioned for just 100 points.]
“Wow… You, you’re really ridiculous.”
Are you doing business during this gap? I’m tempted though.
I really want to beat up those annoying guys who are trying to take my money.
“Then there are no points left?”
[No. There are currently 40 points remaining from resources developed on the Korean Peninsula.]
That’s right. You said that points are steadily accumulated at resource production sites.
“Ah, I see. Then that’s good. The telecommunications business can be done all over the world anyway. I can keep picking and choosing.”
Who wouldn’t give away internet access equipment like antennas for free and only charge a monthly fee?
Then, before Android, should we start a light telecommunications company? We need to save 100 billion won in network usage fees.
[I told you there were a few more things to keep in mind.]
“Oh, I see. What is it?”
[Consumer devices such as smartphones necessarily require ground base stations. This is because satellite communication functions are not yet sufficiently widespread in wireless electronic devices. Therefore, it is difficult to conduct mobile communication business, i.e. identification number assignment service, with the satellite communication business.]
“Oh, really? Then it won’t get much better, right?”
[If that happens, there will be a disadvantage in that there will be restrictions on the provision of mobile communication services such as smartphones, and there will be a stark difference from existing telecommunications companies. It will be impossible to obtain any market share except for the Internet business sector.]
“Hmm… That’s difficult. But that mobile service is about registering a phone number, right?”
[Yes.]
“Can’t we do it later? Let’s start with satellite communication without capital and then do it once we have some cash.”
[Of course, you can do that.]
“And what else is there?”
I told you there were a few things to watch out for.
[Internet usage also occurs between telecommunications companies. Therefore, network usage fees are costs that can be demanded between telecommunications companies.]
“Oh, really? Why does that happen between carriers? I don’t quite understand.”
[This often happens when sending and receiving data between users using different carriers.]
“Uh… I think I know. Anyway, so?”
[Therefore, there is a possibility that the carrier may intentionally charge more network usage fees to your carrier since the amount of traffic requested to other carriers is higher at the beginning. Currently, the three carriers do not implicitly settle network usage fees with each other because the traffic they send and receive is equal.]
“It’s difficult, it’s difficult.”
[This part seems to be resolved by moving the Sarah AI server internet to our telecommunications company. In that case, we may charge network usage fees. However, since some of Nanosoft’s servers are still being used domestically, it will be necessary to coordinate opinions with Nanosoft regarding this issue.]
“Wait a minute… So, if I understand correctly, if other video streaming companies provide their services only through our internet, then South Korean telecommunications companies will have to pay us for network usage fees. Is that correct?”
[Yes, it’s the same reason why some large global companies like YouTube don’t pay network usage fees to Korean telecommunications companies. They don’t pay network usage fees to Korean telecommunications companies because they only have their servers overseas. Instead, Korean telecommunications companies end up paying network usage fees to telecommunications companies in the countries where their servers are located.]
“Oh… That’s it? Then this will make for a pretty interesting picture, right?”
Okay. Hell Joseon-style management method. You guys should try it too.