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Telecom executives say tech giants benefit most from Europe's telecoms

Posted: Thu Jan 23, 2025 4:20 am
by tanjimajuha20
Europe's largest telecoms companies have called on the European Union to force big tech companies like Netflix and Google to contribute fairly to their networks. The call is made in an open letter from the CEOs of 20 companies, including BT, Deutsche Telekom and Telefónica, to the European Commission and MEPs. The initiative aims to support investment in 5G and the transition to full fibre networks.

infrastructure and drive internet traffic, and should therefore spend more to support and develop it. They also say future investment in telecoms infrastructure is under pressure and stress the need for regulation to ensure that investment is made.

The signatories are Timotheus cambodia whatsapp resource Höttges of Deutsche Telekom, Christel Heydemann of Orange, José María Álvarez-Pallete of Telefónica and Pietro Labriola of Telecom Italia. They propose a mechanism that would only charge the largest generators of internet traffic, with an emphasis on accountability and transparency in the fees, so that operators invest directly in the EU’s digital infrastructure.

The "fair share" initiative has already gained support in Brussels, with the European Parliament in June expressing its intention to create conditions in which large traffic generators contribute fairly to the funding of telecoms networks without compromising net neutrality. The European Commission says an additional €200 billion may be needed to roll out 5G networks to all populated areas and achieve full gigabit coverage across the EU by 2030.

European telecoms executives say data volumes are growing by an average of 20-30% a year, driven largely by a few large tech companies. But they say such growth is unlikely to yield a commensurate return on investment in the current environment. Tech giants have previously spoken out against the "fair share" initiative, arguing that they are already investing in internet infrastructure, including undersea cables and data centers.

The initiative by European telecoms companies highlights the importance of sharing responsibility for infrastructure investments among all key players in the digital economy. It also highlights potential tensions between traditional telecoms companies and big tech companies, which could have long-term implications for the EU’s competitiveness in the global digital space.