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Telecommunications companies are demanding more money from the technology giants for network use across the EU

  • October 2, 2023
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Major European telecommunications operators such as Deutsche Telekom and Telefónica are demanding that Europe make major players in the technology world pay for the use of their networks.

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Major European telecommunications operators such as Deutsche Telekom and Telefónica are demanding that Europe make major players in the technology world pay for the use of their networks.

Technology companies such as Google and Netflix use the networks available in Europe. It is therefore only logical that the providers who provide these networks pay for them. Several telecommunications companies now want Europe to get this problem under control, reports the Financial Times.

We want more money

Above all, the large telecommunications companies want a fair contribution from the other parties. The CEOs of around twenty companies in the industry have signed an open letter, already seen by The Times, asking for more cost help. The tech companies not only benefit from the infrastructure, but also significantly increase data traffic, according to the signatories. The letter is addressed to the European Commission and the members of the European Parliament. In addition to Deutsche Telekom and Telefónica, the CEOs of Orange and Telecom Italia are also listed by name.

The collective of telecom CEOs warns that future investments are at risk and measures must be taken to protect them. This fair contribution to the use of infrastructure by tech companies is intended to help. They add that Europe needs to take action in this area as telecoms companies face billions in investments with the necessary support from 5G and full fiber networks.

One proposal from the telecommunications companies is a payment mechanism aimed only at the largest consumers. The focus would be on contribution transparency so that providers can invest directly in the European infrastructure.

Free use

According to the signatories of the letter, data traffic is increasing by an average of twenty to thirty percent every year. This is probably mainly due to a handful of large tech players. According to the telecommunications world, these numbers would continue to rise, but without corresponding ROI. The Telekom bosses also claim in the letter that the big names hardly pay anything for the use of the networks, but charge their customers high prices.

The idea is gaining increasing support within the EU. The European Commission estimates that around €200 billion of investment will be needed by 2030 to achieve full 5G in all densely populated areas and full gigabit coverage across the Union.

Of course, representatives of tech companies believe that they are already investing enough and that the telecommunications companies will grow with their success. They also see a European customer who simply has to pay twice for the same things. This will undoubtedly continue.

Europe and the world of Big Tech are therefore not yet ready to completely bury the digital hatchet. This was already the case with the stricter rules for electronic products and the choices for the famous gatekeepers.

Source: IT Daily

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